Larvotto Resources has placed a significant hurdle in front of its proposed $150 million antimony smelter in New South Wales, stating it will not proceed unless the price of the critical mineral doubles and a guaranteed floor price is established.
The developer argues that current market conditions do not support the economics of the project, which aims to be Australia's first facility of its kind in half a century.
The stance by Larvotto challenges the federal government's strategic objective to transform Australia into a global processing powerhouse for critical minerals.
By insisting on a price guarantee, the company is effectively asking for state-backed risk mitigation to make the capital expenditure viable.
This requirement highlights the tension between industrial policy goals and the commercial realities faced by private developers in the critical minerals supply chain.
The development comes as Larvotto navigates a complex corporate landscape, having recently defended its takeover bid for Hammer Metals against a rival proposal from Austral Resources.