Australian Strategic Materials Ltd (ASX:ASM) has received A$6.5 million in funding for its rare earths and critical minerals Dubbo Project, under Tranche 2 of the Australian Government’s Critical Minerals Development Program (CMDP).
ASM will receive the funding, subject to the execution of binding documentation, to progress the Dubbo Project’s EPC Definition activities with respect to non-process infrastructure.
Through these activities, the company will be able to advance the project design maturity of key areas outside of the process plant and include:
- residue storage & handling facilities;
- site water management;
- utility design and supply;
- greenhouse gas emission reduction studies; and
- site establishment planning.
Investors have welcomed the support, with shares as much as 9.39% higher in the first hour of ASX trading to A$1.165.
“Generous support”
“ASM is grateful to receive this generous support from the Australian Government for our rare earths and critical minerals Dubbo Project,” ASM managing director and CEO Rowena Smith said.
“As part of our commitment to strong ESG performance, this funding will allow us to optimise the final design of the project’s carbon, water and residue management.
“This is another exciting step for our Dubbo Project, as we build our global mine to metals business and look to bring new jobs and opportunities to the people of Dubbo and the region.”
The total cost of the non-process infrastructure EPC Definition activities is estimated to be $15.35 million. ASM will co-contribute $8.85 million to the cost of the activities, which are planned to start in June 2023.
About the Dubbo Project
The Dubbo Project in central-western New South Wales (NSW) is construction ready, with all major permits approved. It hosts the polymetallic Toongi Deposit and contains light and heavy rare earths, zirconium, niobium and hafnium.
Reserves support an initial project life of 20 years with potential for a significantly longer mine life.
ASM intends to develop the Dubbo Project to produce metal oxides in the form of chemicals, powders and metals, which will be available in a range of standard and customised specifications, based on market requirements.
The company has completed significant successful test work to optimise oxide recovery in partnership with the Australian Nuclear Science and Technology Organisation (ANSTO).
Long-term, the materials produced from the Dubbo Project will be used for refining into critical metals at its proposed metals plants, the first of which is in South Korea.