The Association of Mining and Exploration Companies published a government-commissioned design paper for Australia’s critical minerals strategic reserve.
Australia is accelerating its critical minerals strategy, with rare earths increasingly treated as strategic assets rather than conventional raw materials. On Friday, the Association of Mining and Exploration Companies (AMEC) released a government-commissioned design paper proposing a Critical Minerals Strategic Reserve (CMSR). The blueprint focuses on rare earth elements and outlines a production underwriting scheme that would support projects through guaranteed price floors and ceilings, reducing investment risk.
The model draws parallels with U.S. rare earth price-support mechanisms introduced last July, when the Department of Defense became the largest shareholder in MP Materials and issued offtake guarantees with clear price floors (we reported). Following that move, Australia’s Minister for Resources, Madeleine King, signaled interest in similar measures Down Under. The now-proposed approach, however, goes further by capping upside returns as well: when prices exceed agreed-upon ceilings, producers would return a percentage to the government, limiting taxpayer exposure while maintaining price certainty during downturns.
The CMSR targets the four magnet-critical rare earth elements: neodymium, praseodymium, dysprosium, and terbium. By focusing on these supply-chain choke points, the policy aims to stabilize production, reduce investment risk, and strengthen Australia’s role in global rare earth supply chains.
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