The 267th Sydney Mining Club – Online Forum
at 1:00 pm on Thursday 3 March 2022 via Zoom Webinar
NSW Hitting Big in Rare Earths with ASM’s Dubbo Zircon
MD Dave Woodall presents an Online Forum about the stellar rise of this ASX favourite
Since its July 2021 spin out from Alkane, Australian Strategic Minerals (ASX:ASM) has found itself at the forefront of global mining and manufacturing interest, and its little wonder why.
Bursting onto the scene with a billion-dollar market cap, ASM plans is shaping up as an alternative, secure and environmentally responsible supplier of critical materials including rare earths, titanium and zirconium to the world.
To achieve this, ASM is employing a globalised “mine to metal” strategy that involves extracting, refining and manufacturing high-purity metals and alloys. It will extract rare earths, zirconium, niobium and hafnium – all critical components in the clean energy, health and aerospace industries – from its fully approved and licensed mine located only 25 kilometres south of Dubbo. These minerals will then be processed into high-purity products in its first processing plant in South Korea, paving the way for further metals plants in globally strategic locations.
The geopolitical significance of ASM’s vision should not be understated. Right now, China produces roughly 85 percent of the world’s rare earth oxides and approximately 90 percent of rare earth metals, alloys and permanent magnets – critical components in military, energy and health technologies. For example, just one of Lockheed Martin’s F-35 Lightning II Joint Strike Fighter jets require about 418 kg of rare earth minerals.
Perhaps as concerning is Beijing’s rare earth mining quotas to suppress supply also drive-up prices for importers and manufactures across the West, just as developed economies are transitioning to “clean energy” technologies. For instance, ASM’s supply of rare earths and specialty metals can go into permanent magnets for wind turbines; electric motors and control systems for solar panel arrays; alloys and ceramics for hydrogen energy projects; microprocessors and rechargeable batteries for computers and smart devices; and catalytic convertors to reduce emissions in exhaust gases.
With tensions continuing to rise between China and the West, ASM has successfully positioned itself to be both a successful business and critical ally to non-China tech prosperity by beefing up its supply chain stability. Even better, the Dubbo Zirconia Project bounty offers a lift to people of regional New South Wales and the Korean investors backing it. Not to be missed!
(Note: After Korea’s very shabby treatment over the Bylong Valley Coal project at the hands of NSW policymakers, we must salute our Korean friends for investing again!).