Australia unveils A$1.2 billion strategic reserve for critical minerals

Australia will create an A$1.2 billion strategic reserve focused on antimony, gallium and rare earths, and Treasurer Jim Chalmers promoted the plan to G7-plus finance ministers in Washington.

Australia's federal government has set out details of a A$1.2 billion strategic reserve for critical minerals. The reserve will initially focus on antimony, gallium and rare earths. Treasurer Jim Chalmers raised the plan with finance ministers at a G7-plus meeting in Washington. The government describes the reserve as a way to shore up access to minerals during periods of market disruption. Key facts: - The announced reserve is valued at A$1.2 billion. - The initial mineral priorities are antimony, gallium and rare earths (the latter a group of 17 elements). - Australia has untapped deposits of these minerals, but China currently leads processing, accounting for about 48% of antimony, 98% of gallium and 69% of rare earths globally. - Canberra plans to use its export finance credit agency to enable offtake agreements, in some cases with government participation before mining begins. - The timing of the announcement was linked to outreach to G7-plus partners to seek broader support and coordination. Summary: The government frames the reserve as a geoeconomic move to diversify supply and reassure international partners about access to critical minerals. Implementation will involve export finance tools and offtake arrangements and will be promoted to allied governments. China remains a major processor of these minerals, and how much the reserve will shift existing supply chains is undetermined at this time.