The Australian government announced today that, under its 1.2 billion Australian dollars (equivalent to 800 million US dollars) key mineral strategic reserve plan, the Australian government will focus on antimony, gallium and rare earth elements.
The company stated in a statement that according to the plan, the government will obtain the purchase rights for Australian minerals and sell these rights to meet demand. Australian Resources Minister Madeleine King said at a press conference that the government will negotiate future purchase agreements at fixed or floating prices, playing a part in acting as an intermediary between producers and buyers.
King said that the reserve will have no initial quantity target. She said that its size will depend on demand and Australia's production capacity.
The Australian government has allocated 1 billion Australian dollars for acquisition transactions and 185 million Australian dollars for selective storage of minerals.
King said that the key mineral strategic reserve of Australia will provide additional security for Australian projects, attract investment, and help producers cope with market fluctuations. The plan will be put into operation from July to December and will eventually expand to include other minerals.
King's comments have addressed long-standing market concerns. At the International Mining and Resources Conference in October 2025, the opaque and volatile prices in the Queensland key mineral market hindered investment in Australian projects.
The Office of the Chief Economist of Australia (Office of the Chief Economist) reported that Australian developers plan to build two antimony projects, one gallium project, and 22 rare earth projects.
The Australian Export Finance Corporation (EFA), funded by the Australian government, has supported some of these projects in recent months. It agreed to provide partial financing for the US aluminum company's planned 100-ton-per-year Australian gallium refinery, Nyrstar's Port Pirie antimony pilot plant, and Arafura Rare Earths' Nolans project of the Australian producer, among others.
A few days after the United States and Australia signed a bilateral key mineral cooperation agreement, EFA made the financing decision in October. The two governments agreed to invest over 3 billion US dollars in the projects within the next six months.
The US Export-Import Bank (US EXIM) at that time said it would consider providing 2.2 billion US dollars of joint financing for seven projects in Australia, including three rare earth projects.
Australia plans to further cooperate with international partners on key minerals issues. Australian Foreign Minister Penny Wong said on September 5, 2025, that the government's goal is to collaborate with Japan to establish a secure mineral supply chain.
Finance Minister Jim Chalmers will also meet with the finance ministers of the G7, India, Mexico, and South Korea on January 12 to discuss mineral supply chain issues.
