ASX-listed Victory Metals has underlined the growing geopolitical importance of its North Stanmore project in Western Australia, as China moves to tighten control over exports of key heavy rare earth elements (HREEs), including dysprosium, terbium, and yttrium.

The company’s CEO and executive director, Brendan Clark, described Beijing’s latest restrictions as “a direct threat to both national security and the global energy transition", and said Victory is uniquely positioned to help fill the supply gap for critical minerals outside of China.

“China’s move to restrict exports of key heavy rare earths like dysprosium, terbium, and yttrium is not a surprise, it’s a clear reminder that the West cannot rely on a single nation for critical minerals that underpin defence, energy, and technology,” Clark said.

“Victory recognised this risk early and has strategically built the North Stanmore project around its unique geochemical strengths, particularly its high ratios of HREEs. The metallurgical performance and heavy rare earth recoveries we’ve achieved are exceptional and position Victory at the forefront of becoming a reliable, large-scale, non-Chinese source of critical materials,” he added.

The North Stanmore project, located in the Cue region of Western Australia, hosts a resource rich in heavy rare earths, scandium, and hafnium. The company has invested in metallurgical optimisation and exploration to demonstrate commercial-scale viability, with a focus on building a supply chain aligned with Western interests.

Victory last month published a scoping study that demonstrates that the North Stanmore project offers robust economic returns, with a projected net present value exceeding A$1.2-billion and an internal rate of return of 52% post-tax, based on conservative price forecasts. Even with lower case price assumptions, the study highlights the project’s strong financial viability and low-cost advantages over traditional rare earth projects.

The scoping study, led by independent engineering consultants Mincore, outlines several key financial and operational metrics that showcase the project’s strong economic outlook. These include a capital expenditure estimate of A$337-million (including a 30% contingency) and low operating costs of A$25.5/t of run-of-mine material over the life-of-mine. 

The study also highlights the project’s outstanding metallurgical recovery, with a 94% recovery rate for magnet rare-earth oxides.