Australia's ASM sees jump in rare earths enquiries amid supply shortage

(Reuters) -Australian Strategic Materials said on Friday there has been increased interest from customers for rare earth metals and alloys from its critical metals facility in South Korea, following China's export controls on rare earth materials.

The critical metals producer's Korean Metals Plant is one of the few facilities outside of China with the capability to commercially produce rare earth metals and alloys.

Shares of the company rose as much as 29.1% to A$0.655 to hit a more than 3-week high in early trade before paring some gains. The broader benchmark index edged 0.1% lower.

ASM has concluded purchase orders from U.S.-based Noveon Magnetics and Vacuumschmelze, owned by private equity firm ARA partners, for the supply of rare earth alloys, it said in a statement.

The company is progressing discussions with parties for further sales of a range of rare earth metals amid ongoing talks around future supply with USA Rare Earths, after providing rare earth samples to the firm.

It also completed delivery of 19-metric-ton rare earth metal sale to Magnequench, a division of Canada-based Neo Performance Materials.

China, which accounts for about 90% of global rare-earth production, imposed export restrictions in April on the strategic minerals in response to tariffs introduced by U.S. President Donald Trump.

With increased disruptions to the rare earth supply due to China's export restrictions, the company is positioned to provide alternative supply to the rest of the world, it said.

(Reporting by John Biju in Bengaluru; Editing by Melanie Burton and Rashmi Aich)