Australian Strategic Materials (ASX:ASM) signed a binding agreement with Vietnam Rare Earth Company (VTRE) for the purchase of rare earth oxides from Vietnam to be used as feedstock at ASM’s Korean Metals Plant (KMP).
Under the terms of the agreement, VTRE will deliver 100 tonne of product for the remainder of 2023. The pricing for the feedstock (in USD) will be determined using a formula-based mechanism referencing published market prices for neodymium-praseodymium oxide.
“This agreement will ensure we have the feedstock needed to continue the ramp-up of production at KMP, as anticipated sales contracts progress this year,” said ASM Managing Director & CEO Rowena Smith.
“In sourcing the required oxides from Vietnam and building our relationship with VTRE, we are also ensuring greater oversight of our supply chain, which supports our sustainability and governance commitments to both our customers and our shareholders.”
Australian Strategic Materials describes itself as an emerging vertically integrated producer of critical metals for advanced and clean technologies. It operates the the Dubbo rare earth project, located in central western NSW, about 400km northwest of Sydney, Australia.