The rage of war has placed these military metals in high demand
Metals used in munitions and military technology are in the spotlight as war rages in the Middle East and Ukraine
Tungsten, tin, antimony, rare earths and beryllium among the key commodities to follow
These ASX stocks are moving to stake out a position in critical minerals markets
The rise of fresh tensions in the Middle East has put the spotlight on the minerals needed for military operations.
The wars in Ukraine and Gaza continue to rage, and even escalate, while the outbreak of hostilities between Israel and Iran is leading to fears of a much larger regional, or even global, conflict.
While the first few days of the conflict have boosted the price of oil, it's also a sad fact that military operations are metals intensive.
Even without an additional conflict, US President Donald Trump's 'Big Beautiful Bill' will see the country's defence spending hit US$1 trillion next year for the first time.
In a recent presentation in Toronto, Hallgarten + Company analyst Christopher Ecclestone noted that most of the combatants in World War I and, to a lesser extent, World War II, had all the metals and minerals they needed domestically – which is not the case today.
He also pointed out that war materials are exceedingly high-tech, both in composition and metal inputs, adding that rare earths 'weren't a thing' in WWII.
While loads of different metals, including aluminium and titanium, are needed for defence applications, Ecclestone listed the 'headline' military metals as tungsten, antimony, rare earths, tin and beryllium.
While there aren't any options on the ASX for beryllium, we have a look at some of the juniors with near-term production potential in the other four metals.
Tungsten
Vancouver-based investment firm Mission Critical Metals, of which Ecclestone is also CEO, describes tungsten as the key military metal, due to its use in making bulletproof vehicles, armoured tanks, armour-piercing rounds, high-speed cutting tools, and rocket and aircraft parts.
Mission says that given the turnaround in the tungsten price is relatively recent, the space is yet to attract many new players.
Outside of the ASX's two listed tungsten producers, Almonty Industries (ASX:AII) and EQ Resources (ASX:EQR), there are a couple of other hopefuls.
Tungsten Mining (ASX:TGN) is considering an early production pathway for its Hatches Creek project in the Northern Territory.
Last month, the company reported a maiden inferred resource of 12 million tonnes at 0.17% tungsten trioxide, which will feed into a scoping study.
Preliminary metallurgical studies have successfully produced a tungsten concentrate grading at 50% tungsten trioxide.
Meanwhile, Rumble Resources (ASX:RTR) discovered a tungsten sweetener at its Western Queen gold project in Western Australia last year.
High-grade tungsten mineralisation remains open in all directions with a maiden resource to be reported in the September quarter.
The company will then complete metallurgical testwork to determine the quantum of the tungsten revenue stream and incorporate it into the Western Queen South mining schedule.
Antimony
Antimony is used in military applications including fighter jets, military primers, night vision goggles, lasers, military detonators and military smoke agents.
There's been an explosion of ASX companies seeking exposure to antimony due to a price surge driven by shortages.
Larvotto Resources (ASX:LRV) is one of the more advanced companies globally, with its Hillgrove project in New South Wales due to start production next year.
Nearby, Trigg Minerals' (ASX:TMG) Achilles project contains the Wild Cattle Creek deposit, with a resource of 1.52Mt at 1.97% antimony containing 29,902 tonnes of antimony, which the company says makes it Australia's highest grade primary antimony resource.
Trigg also recently boosted it antimony portfolio with the addition of the Antimony Canyon project in Utah, which has a non-JORC resource of 12.7Mt at 0.79% antimony for 100,300t of contained antimony.
Felix Gold (ASX:FXG) could be in production the soonest from its Treasure Island project in Alaska.
The company is working towards small-scale antimony production by the end of this year from the Scrafford deposit, which previously produced up to 58% antimony.
Also in Alaska, Nova Minerals (ASX:NVA) has applied to the US Department of Defense (DoD) for funding to potentially fast track antimony production from its Stibium deposit.
Larvotto and Trigg have also reported tungsten resources, while Resolution's new project also has tungsten potential.
Rare Earths
Rare earths are essential to the defence sector, making the development of new supply chains a matter of national security for countries including the US.
Neodymium and praseodymium permanent magnets are used in F-35 fighter jets and unmanned aerial vehicles, while lanthanum is used in night vision goggles and terbium is used in naval sonar systems.
Shares in Dateline Resources (ASX:DTR) have exploded recently after Trump tweeted his support for the Colosseum rare earths project in California.
Last week, Dateline confirmed further public support from members of the Trump Administration, including Secretary of the Interior Doug Burgum.
Locksley Resources (ASX:LKY) is a more recent entrant to the space, but its Mojave project in California sits right next to the US' only operating rare earths mine, MP Materials' Mountain Pass, and is also prospective for antimony.
This week, Locksley Resources launched strategic collaboration initiatives, targeting engagement with US agencies, national laboratories, US universities and downstream technology partners.
In Australia, Victory Metals (ASX:VTM) recently received a letter of interest from the Export-Import Bank of the United States for up to US$190 million in project financing for the development of the North Stanmore heavy rare earths project in WA.
The project is set to produce both heavy and light rare earths, as well as gallium and scandium as by-products.
VHM (ASX:VHM) is targeting rare earths and mineral sands production from its Goschen project in Victoria in late 2026 after receiving a mining license for the project recently.
The company is working towards a final investment decision in the December half.
Tin
According to the DoD, tin is used in many defence applications, such as soldering to enable electrical connections in semiconductors, high-end capacitors, and other electronic components in nearly all military hardware.
There's not a lot of tin exposure on the ASX outside of long-time producer Metals X (ASX:MLX).
Metals X-backed Elementos (ASX:ELT) could be next in line after releasing a definitive feasibility study for its Oropesa project in Spain in April.
The company is now working on permitting and financing ahead of a making a final investment decision.
Stellar Resources (ASX:SRZ) says its Heemskirk tin project in Tasmania has the potential to be a global top 10 producer.
A prefeasibility study is due in the second half of this year, with the company expected to move straight into a DFS.
Sky Metals (ASX:SKY) holds the advanced Tallebung project in NSW, a historical tin producer.
The company is advancing a bulk sample metallurgical program to optimise the process flowsheet and produce marketable tin concentrates ahead of offtake marketing.
Earlier stage explorers include Brazilian focused Australian Mines (ASX:AUZ) and Perpetual Resources (ASX:PEC), who are trying to find new deposit in a waning tin power which almost 40 years ago supplied 22% of the world's primary tin.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Advertiser
an hour ago
- The Advertiser
Australian stock market snaps five-week winning streak
Australia's share market has given up a five-week winning streak, as investors grapple with military conflict, global growth concerns and lofty valuations. The S&P/ASX200 fell 18.2 points, or 0.21 per cent, to 8,505.5, as the broader All Ordinaries lost 17.9 points, or 0.2 per cent, to 8,723.5. Over the week, the top-200 stocks fell roughly 0.5 per cent. The slump came after six sessions of surging oil prices amid escalating Israel-Iran conflict and as US President Donald Trump flagged potential American military involvement within two weeks. The broader investor uncertainty then collided with heavy falls in big miners after weak economic data from China, as Rio Tinto plummeted to its lowest close since 2022, IG Markets analyst Tony Sycamore told AAP. Five of 11 local sectors sectors improved on Friday, but a whopping 4.4 per cent drop in materials stocks over the week weighed on the bourse. "The big concern for the ASX200 going into the new financial year is the elevated valuations around these banks and that no one wants to touch these big miners," Mr Sycamore said. "There's been 23 months of falling house prices in China, and that doesn't augur well for the price of iron ore or for the price of the big miners, which remain an influential part of the index." Financials slipped 0.6 per cent on Friday to finish roughly flat for a second week, a day after CBA etched its latest record high of $183.31 a share. All four big banks closed in the red, with ANZ facing the sharpest decline with a 2.5 per cent slip to $28.39. In banking news, former federal coalition finance minister Simon Birmingham was appointed the Australian Banking Association's chief executive, replacing Anna Bligh after eight years at the helm. Australian energy stocks have had a massive week, surging almost 11 per cent since Israel launched air strikes on Iran last Friday. Woodside is up 7.7 per cent over the same period, while Santos has rallied 12 per cent. Oil prices hit their highest levels since January overnight as the conflict raged on, but eased to $US75.24 a barrel after Mr Trump's two-week decision window relieved fears of an immediate US attack. The IT sector had a surprisingly good week despite broader risk-off sentiment, edging 0.3 per cent higher since Monday's open. The Australian dollar is buying 64.76 US cents, up slightly from 64.71 US cents on Thursday at 5pm, coiling tightly near the mid-level of its recent range with the greenback. Looking ahead, while the Middle East conflict is likely to dominate headlines, it's also a massive week for macroeconomic data. Investors will be poring over local inflation figures, US economic growth, and manufacturing data for four of the world's seven largest economies. ON THE ASX: * The benchmark S&P/ASX200 index finished Friday 18.2 points lower, or down 0.21 per cent, to 8,505.5 * The broader All Ordinaries lost 17.9 points, or 0.2 per cent, to 8,723.5 CURRENCY SNAPSHOT: One Australian dollar buys: * 64.76 US cents, from 64.71 US cents on Thursday at 5pm * 94.13 Japanese yen, from 93.99 Japanese yen * 56.24 Euro cents, from 56.43 Euro cents * 48.09 British pence, from 48.27 pence * 108.05 NZ cents, from 108.34 NZ cents Australia's share market has given up a five-week winning streak, as investors grapple with military conflict, global growth concerns and lofty valuations. The S&P/ASX200 fell 18.2 points, or 0.21 per cent, to 8,505.5, as the broader All Ordinaries lost 17.9 points, or 0.2 per cent, to 8,723.5. Over the week, the top-200 stocks fell roughly 0.5 per cent. The slump came after six sessions of surging oil prices amid escalating Israel-Iran conflict and as US President Donald Trump flagged potential American military involvement within two weeks. The broader investor uncertainty then collided with heavy falls in big miners after weak economic data from China, as Rio Tinto plummeted to its lowest close since 2022, IG Markets analyst Tony Sycamore told AAP. Five of 11 local sectors sectors improved on Friday, but a whopping 4.4 per cent drop in materials stocks over the week weighed on the bourse. "The big concern for the ASX200 going into the new financial year is the elevated valuations around these banks and that no one wants to touch these big miners," Mr Sycamore said. "There's been 23 months of falling house prices in China, and that doesn't augur well for the price of iron ore or for the price of the big miners, which remain an influential part of the index." Financials slipped 0.6 per cent on Friday to finish roughly flat for a second week, a day after CBA etched its latest record high of $183.31 a share. All four big banks closed in the red, with ANZ facing the sharpest decline with a 2.5 per cent slip to $28.39. In banking news, former federal coalition finance minister Simon Birmingham was appointed the Australian Banking Association's chief executive, replacing Anna Bligh after eight years at the helm. Australian energy stocks have had a massive week, surging almost 11 per cent since Israel launched air strikes on Iran last Friday. Woodside is up 7.7 per cent over the same period, while Santos has rallied 12 per cent. Oil prices hit their highest levels since January overnight as the conflict raged on, but eased to $US75.24 a barrel after Mr Trump's two-week decision window relieved fears of an immediate US attack. The IT sector had a surprisingly good week despite broader risk-off sentiment, edging 0.3 per cent higher since Monday's open. The Australian dollar is buying 64.76 US cents, up slightly from 64.71 US cents on Thursday at 5pm, coiling tightly near the mid-level of its recent range with the greenback. Looking ahead, while the Middle East conflict is likely to dominate headlines, it's also a massive week for macroeconomic data. Investors will be poring over local inflation figures, US economic growth, and manufacturing data for four of the world's seven largest economies. ON THE ASX: * The benchmark S&P/ASX200 index finished Friday 18.2 points lower, or down 0.21 per cent, to 8,505.5 * The broader All Ordinaries lost 17.9 points, or 0.2 per cent, to 8,723.5 CURRENCY SNAPSHOT: One Australian dollar buys: * 64.76 US cents, from 64.71 US cents on Thursday at 5pm * 94.13 Japanese yen, from 93.99 Japanese yen * 56.24 Euro cents, from 56.43 Euro cents * 48.09 British pence, from 48.27 pence * 108.05 NZ cents, from 108.34 NZ cents Australia's share market has given up a five-week winning streak, as investors grapple with military conflict, global growth concerns and lofty valuations. The S&P/ASX200 fell 18.2 points, or 0.21 per cent, to 8,505.5, as the broader All Ordinaries lost 17.9 points, or 0.2 per cent, to 8,723.5. Over the week, the top-200 stocks fell roughly 0.5 per cent. The slump came after six sessions of surging oil prices amid escalating Israel-Iran conflict and as US President Donald Trump flagged potential American military involvement within two weeks. The broader investor uncertainty then collided with heavy falls in big miners after weak economic data from China, as Rio Tinto plummeted to its lowest close since 2022, IG Markets analyst Tony Sycamore told AAP. Five of 11 local sectors sectors improved on Friday, but a whopping 4.4 per cent drop in materials stocks over the week weighed on the bourse. "The big concern for the ASX200 going into the new financial year is the elevated valuations around these banks and that no one wants to touch these big miners," Mr Sycamore said. "There's been 23 months of falling house prices in China, and that doesn't augur well for the price of iron ore or for the price of the big miners, which remain an influential part of the index." Financials slipped 0.6 per cent on Friday to finish roughly flat for a second week, a day after CBA etched its latest record high of $183.31 a share. All four big banks closed in the red, with ANZ facing the sharpest decline with a 2.5 per cent slip to $28.39. In banking news, former federal coalition finance minister Simon Birmingham was appointed the Australian Banking Association's chief executive, replacing Anna Bligh after eight years at the helm. Australian energy stocks have had a massive week, surging almost 11 per cent since Israel launched air strikes on Iran last Friday. Woodside is up 7.7 per cent over the same period, while Santos has rallied 12 per cent. Oil prices hit their highest levels since January overnight as the conflict raged on, but eased to $US75.24 a barrel after Mr Trump's two-week decision window relieved fears of an immediate US attack. The IT sector had a surprisingly good week despite broader risk-off sentiment, edging 0.3 per cent higher since Monday's open. The Australian dollar is buying 64.76 US cents, up slightly from 64.71 US cents on Thursday at 5pm, coiling tightly near the mid-level of its recent range with the greenback. Looking ahead, while the Middle East conflict is likely to dominate headlines, it's also a massive week for macroeconomic data. Investors will be poring over local inflation figures, US economic growth, and manufacturing data for four of the world's seven largest economies. ON THE ASX: * The benchmark S&P/ASX200 index finished Friday 18.2 points lower, or down 0.21 per cent, to 8,505.5 * The broader All Ordinaries lost 17.9 points, or 0.2 per cent, to 8,723.5 CURRENCY SNAPSHOT: One Australian dollar buys: * 64.76 US cents, from 64.71 US cents on Thursday at 5pm * 94.13 Japanese yen, from 93.99 Japanese yen * 56.24 Euro cents, from 56.43 Euro cents * 48.09 British pence, from 48.27 pence * 108.05 NZ cents, from 108.34 NZ cents Australia's share market has given up a five-week winning streak, as investors grapple with military conflict, global growth concerns and lofty valuations. The S&P/ASX200 fell 18.2 points, or 0.21 per cent, to 8,505.5, as the broader All Ordinaries lost 17.9 points, or 0.2 per cent, to 8,723.5. Over the week, the top-200 stocks fell roughly 0.5 per cent. The slump came after six sessions of surging oil prices amid escalating Israel-Iran conflict and as US President Donald Trump flagged potential American military involvement within two weeks. The broader investor uncertainty then collided with heavy falls in big miners after weak economic data from China, as Rio Tinto plummeted to its lowest close since 2022, IG Markets analyst Tony Sycamore told AAP. Five of 11 local sectors sectors improved on Friday, but a whopping 4.4 per cent drop in materials stocks over the week weighed on the bourse. "The big concern for the ASX200 going into the new financial year is the elevated valuations around these banks and that no one wants to touch these big miners," Mr Sycamore said. "There's been 23 months of falling house prices in China, and that doesn't augur well for the price of iron ore or for the price of the big miners, which remain an influential part of the index." Financials slipped 0.6 per cent on Friday to finish roughly flat for a second week, a day after CBA etched its latest record high of $183.31 a share. All four big banks closed in the red, with ANZ facing the sharpest decline with a 2.5 per cent slip to $28.39. In banking news, former federal coalition finance minister Simon Birmingham was appointed the Australian Banking Association's chief executive, replacing Anna Bligh after eight years at the helm. Australian energy stocks have had a massive week, surging almost 11 per cent since Israel launched air strikes on Iran last Friday. Woodside is up 7.7 per cent over the same period, while Santos has rallied 12 per cent. Oil prices hit their highest levels since January overnight as the conflict raged on, but eased to $US75.24 a barrel after Mr Trump's two-week decision window relieved fears of an immediate US attack. The IT sector had a surprisingly good week despite broader risk-off sentiment, edging 0.3 per cent higher since Monday's open. The Australian dollar is buying 64.76 US cents, up slightly from 64.71 US cents on Thursday at 5pm, coiling tightly near the mid-level of its recent range with the greenback. Looking ahead, while the Middle East conflict is likely to dominate headlines, it's also a massive week for macroeconomic data. Investors will be poring over local inflation figures, US economic growth, and manufacturing data for four of the world's seven largest economies. ON THE ASX: * The benchmark S&P/ASX200 index finished Friday 18.2 points lower, or down 0.21 per cent, to 8,505.5 * The broader All Ordinaries lost 17.9 points, or 0.2 per cent, to 8,723.5 CURRENCY SNAPSHOT: One Australian dollar buys: * 64.76 US cents, from 64.71 US cents on Thursday at 5pm * 94.13 Japanese yen, from 93.99 Japanese yen * 56.24 Euro cents, from 56.43 Euro cents * 48.09 British pence, from 48.27 pence * 108.05 NZ cents, from 108.34 NZ cents
AU Financial Review
an hour ago
- AU Financial Review
Rudd works overtime to secure Albanese an audience with Trump
Prime Minister Anthony Albanese has decided against attending next week's NATO summit in the Netherlands, dashing the slim possibility of a first face-to-face meeting with Donald Trump. Albanese's attendance at the summit was probably 50-50 at best, but after being stood up by Trump at the G7 summit in Canada this week, the Prime Minister is facing scrutiny over whether Australia is 'off' with the leader of our biggest ally.
Sydney Morning Herald
2 hours ago
- Sydney Morning Herald
ASX Runners of the Week: Amplia, archTIS and Vanadium Resources
If you were looking for correlation between the seemingly continuous breakouts of military hostilities between nuclear-armed nations and the market - good luck. The ASX continued at near all-time highs this week, pulling back a fraction by Friday, as conflict between Iran and Israel continued to rise. The oil price surged a further 10 per cent this week as Israel turned its focus from Iran's nuclear facilities to targeting its oil and gas infrastructure. Uranium stocks were the week's main winners. Surprisingly, they were not fuelled directly by global drivers, but rather by investment heavyweight Sprott's physical uranium trust purchase of $200 million worth of uranium oxide, which was announced on Monday. The result for uranium stocks on the index was deafening. Uranium miners Boss Energy, Paladin Energy and Deep Yellow were among the most heavily shorted on the ASX, making up three of the top 10 shorted companies. A sharp increase in uranium caused a two-fold effect of en masse buying and short seller panic to close out positions, with the big three uranium stocks all surging up 20 per cent on the day. In a rare shake-up, no Australian-based resource companies feature on this week's Bulls N' Bears' ASX Runners list. Instead, the chocolates went to a groundbreaking Aussie biotech story, which could be on to the makings of one of the biggest breakthroughs in oncology treatment in years. Up 339% (5.7c – 25c) This week's Bulls N' Bears ASX Runner of the Week is biotech trailblazer Amplia Therapeutics, which sent the market into an absolute tailspin thanks to a jaw-dropping set of results from a clinical trial for incredibly nasty pancreatic cancer.
