Australian Strategic Materials Ltd (ASX:ASM) has signed a Joint Statement of Cooperation to expand the use of rare earths and critical metals in Korea and develop import opportunities that will secure the supply of these metals for Korean industry.
The statement has been signed with the Korean Mine Rehabilitation and Resource Corporation (KOMIR), the renamed Korean Resources Corporation (KORES) and continues ASM’s cooperation with the body.
Areas for cooperation
Key areas contemplated for cooperation under the Joint Statement of Cooperation include:
- Importation of rare-earth products into Korea, including for strategic stockpiling; and
- Supplying ASM with rare-earth products to enable Korean domestic production of rare-earth magnet feed metal at ASM’s Korean Metals Plant.
Managing director David Woodall signs the Joint Statement of Cooperation.
“Sign of Korea’s commitment”
ASM managing director David Woodall said: “This builds on the cooperative and collaborative relationship between Korea and ASM, creating further opportunities to engage on the strategic issue of critical minerals and metal supply.
“This Joint Statement of Cooperation is another firm sign of Korea’s commitment to securing its supply of critical metals and to working with ASM to deliver an outcome that is beneficial to the Korean supply chain.
“ASM welcomes this opportunity to work with KOMIR to provide an alternative, secure and sustainable supply of critical metals. ASM will commence production of critical metals at ASM’s Korean Metals Plant in 2022.”
About KOMIR
KOMIR is the Korean Government Agency responsible for national resource security, including developing overseas mining and processing capacity to supply the Korean market.
One of KOMIR’s strategic objectives is to upgrade the country's access to critical minerals.
KOMIR’s CEO Kyu-yearn Hwang said: “To improve the supply and demand of rare earths in South Korea, the South Korean government supports the operation of South Korean critical metals plants.
“Partnering with ASM will enable us to deliver on our strategy to ensure a stable, secure supply of critical minerals and metals for the South Korean industry.”
‘Mine to metals’ producer
Australian Strategic Materials is an integrated materials business and emerging 'mine to metals' producer of critical metals.
The company’s cornerstone 100%-owned Dubbo Project is a potential long-term resource of rare earths, zirconium, niobium and hafnium, located in central-western NSW, Australia.
Optimisation study
A recently completed optimisation study on this project has revealed a pre-tax NPV of A$2.361 billion and pre-tax IRR of 23.5%.
The strong financial results, based on an initial ore reserve of just 18.9 million tonnes with considerable upside potential, also include an annual free cash flow of A$425 million.
In this interview with Proactive, David Woodall discusses the study.
Korean metals business
ASM’s metals business is founded on an innovative metallisation process that converts oxides into high purity metals, alloys and powders using less energy than conventional methods.
The pilot plant in South Korea has demonstrated the commercial scalability of the process and successfully produced a range of high purity metals and alloys, including titanium, neodymium, praseodymium, dysprosium and zirconium.
Following this success, ASM’s first metallisation plant is under construction in South Korea to initially supply a range of critical metals, including rare earth metals and alloys, zirconium, and titanium.
ASX success story
ASM has been an ASX success story since listing in mid-2020 and its market cap now stands at approximately A$1.569 billion.
On the back of strong news flow from the Dubbo Project and the Korean business, the company's shares have traded from A$4.08 on May 9 to a record high of $A14.15 on November 14 and last traded at A$11.25.