Having identified synergies and shared objectives, emerging vertically integrated critical minerals company Australian Strategic Materials Ltd (ASX:ASM) has signed an MoU with Blackstone (NYSE:BX) Minerals Ltd (ASX:BSX, OTCQX:BLSTF) and Vietnam Rare Earth Company Ltd to collaborate on integrated rare earths opportunities.
Blackstone is an ASX-listed nickel producer developing vertically integrated supply chains in Vietnam, while Vietnam Rare Earth Company (VTRE) is the only mid-stream rare earth element (REE) refiner in Vietnam.
"Collaborative approach"
“This MOU has the potential to drive a more collaborative approach within the rare earth elements and critical minerals sector and deliver positive outcomes for all parties involved,” ASM managing director and CEO Rowena Smith said.
“We have already established a strong relationship with the VTRE team and I am excited by the progress they are making to increase their oxide production capacity.
“The partnership they are looking to build with Blackstone has the potential to benefit ASM’s existing supply of rare earth oxides for processing at the KMP (Korean Metals Plant).”
The MoU will act as a three-way framework to facilitate collaboration across several areas, including:
- Identifying, assessing and securing REE mining opportunities in Vietnam that can be used as feedstock for VTRE’s REE refinery;
- Strengthening the parties’ capability in securing REE mining concessions;
- Potential co-investment by Blackstone, ASM and VTRE; and
- Securing long-term offtake of REE oxides.
“I welcome the opportunity to work with Blackstone on this MoU and building a long-term relationship and extending my existing relationship with ASM, this is a great opportunity to develop the full value chain for rare earths in Vietnam,” VTRE chair Luu Anh Tuan said.
In April this year, ASM signed a binding agreement with VTRE for the purchase of rare earth oxides from Vietnam, to be used as feedstock at ASM’s Korean Metals Plant (KMP). The two companies intend to develop the relationship into a long-term supply agreement.
"Complementary competencies"
“It is not often that you find a potential partnership in which the strategic advantages and core competencies of each party are so complementary,” Blackstone Minerals managing director Scott Williamson said.
“For Blackstone, a potential move into rare earths in Vietnam aligns with our Technology Mineral strategy and is synergistic to our Ta Khoa Project and our existing relationships in the EV industry.
"For VTRE, teaming up with Blackstone gives VTRE access to our extensive knowledge in ESG management, mining, minerals processing and refining; for ASM, it is a great opportunity to extend their relationship with VTRE and to progress their vision of full vertical integration in critical minerals.
“With this MoU, Blackstone, VTRE and ASM will progress discussions with the view of potentially establishing a world-leading fully integrated rare earths business.”
Blackstone has also engaged with several electric vehicle car manufacturers, which have shown interest in securing REEs for their company’s supply chains.
While BSX remains focused on its Ta Khoa nickel refinery development, the MoU offers an opportunity to develop relationships and explore long-term supply and manufacturing opportunities.
“Glad to see Australian and Vietnamese companies partnering together to form new critical minerals supply chains,” Australian Ambassador to Vietnam Andrew Goledzinowski said.
“Both countries are playing a role in diversifying and de-risking the availability of rare earth elements.
“This agreement leverages Australia’s world-leading regulatory frameworks for mining and resources, and Vietnam’s abundant labour supply and strong manufacturing base.”