SYDNEY - Australia's ruling center-left Labor government on Thursday pledged an initial investment of A$1.2 billion ($763 million) to set up a strategic reserve of critical minerals as it looks to create a separate supply chain in the market.

Prime Minister Anthony Albanese, holding a slender lead in polls ahead of a national election nine days away, said the reserve would make use of the country's mineral deposits and boost its economic resilience.

"We need to do more with the natural resources the world needs, and that Australia can provide," Albanese said in a statement.

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Albanese said the government would buy critical minerals from commercial projects or set up an option to buy at a given price, holding security over the assets. The government will also establish stockpiles of some minerals produced under offtake agreements.

"It will mean we can deal with trade and market disruptions from a position of strength, because Australia will be able to call on an internationally significant quantity of resources in global demand," Albanese said.

Minerals held by the strategic reserve would be made available to domestic industries and key international partners.

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A task force will be created to consult and finalise the scope and design of the strategic reserve, which is expected to be operational in the second half of 2026, Albanese said.