A $5 million grant will support Australian Strategic Materials to explore potential lower capital and shorter implementation pathways to rare earth production at its Dubbo Project in New South Wales.
The funding is through the Federal Government’s International Partnerships in Critical Minerals (IPCM) Program, and Australian Strategic Materials will match the investment.
The Dubbo Project is the company’s cornerstone critical minerals deposit, set to produce a range of rare earths and critical mineral oxides essential to the global energy transition. The IPCM Program was launched in February 2024 to provide critical minerals businesses with funding to grow end-to-end supply chains with Australia’s international partners.
The RE options assessment and pilot program will precede the front-end engineering design (FEED) services contract awarded to US-owned Bechtel Mining and Metals in March 2024.
The RE Options Assessment and Pilot Program will enable Australian Strategic Materials to identify alternative, capital-efficient and near-term options for producing rare earth elements at the Dubbo Project before commencing the FEED services contract and undertaking an updated feasibility study on the construction and operation of the Dubbo Project.
The RE Options Assessment and Pilot Program will involve engineering, sampling, metallurgical testing and a pilot program at the company’s pilot facility at the Australian Nuclear Science and Technology Organisation, New South Wales.
Australian Strategic Materials will deliver the program with international partners DRA Global and Stantec, as well as local service providers Mining One and Core Metallurgy. These activities are critical to Australian Strategic Materials progressing key funding activities and making the final investment decision (FID) on the Dubbo Project, which is targeted for the first half of 2026.
Australian Strategic Materials Managing Director and CEO, Rowena Smith, thanked the Federal Government for its support in enhancing Australia’s rare earth production and processing capability.
“Working in collaboration with international strategic partners is critical if Australia is to play a leading role in building alternative, end-to-end rare earths and critical minerals supply chains,” said Ms Smith.
This funding support is in addition to the company’s recent capital-raising activities and current discussions with the Export-Import Bank of the United States regarding Australian Strategic Materials’ application for funding under the Engineering Multiplier Program.
Ms Smith said the funding will enable the company to advance critical activities to reach FID on the Dubbo Project and transition into the construction phase.
“Australian Strategic Materials is building a mine-to-metals business to extract, refine and manufacture high-purity metals and alloys for a global customer base. The Dubbo Project will develop a secure, sustainable source of rare earths and critical minerals, strengthen mid-stream processing capability in Australia, drive renewable energy adoption and create jobs and investment in regional Australia.”
Federal Resources Minister, Madeleine King, said that the latest funding is in addition to a $6.5 million grant the Federal Government provided to the company in 2023 through the Critical Minerals Development Program to support mining, separation and refining for critical minerals at their Dubbo project.
“The Dubbo Project will produce critical minerals such as zirconium, niobium and hafnium, as well as several rare earth elements.
“Many of these elements are critical to the defence industry,” Ms King said.
The project is also expected to deliver up to 1,000 local jobs during the construction period and approximately 270 jobs when operational.
Ms King said the Federal Government is supporting the development of Australia’s critical minerals sector, including rare earths, to help companies add value and diversify global supply chains.
“Government support to refine rare earths is important for our sovereign capabilities and will help our trading partners meet their economic, national security and emission reduction commitments.”
Ms King said International Partnerships in Critical Minerals grants will support Australian jobs and ensure Australian critical minerals are mined and processed at the highest environmental and social governance standards.
