Australian Strategic Materials Ltd (ASX:ASM, OTC:ASMMF) has received strong validation of its strategy to build international critical mineral supply chain opportunities on being awarded an A$5 million Australian Federal Government grant for its Dubbo Project.
The grant, to be matched by ASM, is part of the Federal Government’s International Partnerships in Critical Minerals Program (IPCM) launched in February 2024 to provide critical minerals businesses funding to grow end-to-end supply chains with Australia’s international partners.
To support pre-FEED work
It will support work to identify potential lower capital and shorter implementation pathways to rare earth element (REE) production at the Dubbo Project in Central West New South Wales as part of ASM’s RE Options Assessment and Pilot Program.
This program will be undertaken as a precursor to the Front-End Engineering Design (FEED) services contract awarded to US-owned Bechtel Mining and Metals Inc. in March 2024.
“Recognises importance”
“This funding recognises the Dubbo Project’s national and international strategic importance," said ASM managing director and CEO Rowena Smith.
"With this funding, we will be able to undertake important work to identify lower capital and shorter implementation pathways to unlock rare earth production at the Dubbo Project and ensure a focused completion of our final FEED.
"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.
“We thank the Australian Government for their generous support to enhance Australia’s rare earth production and processing capability,” she said.
ASM managing director and CEO Rowena Smith (blue jacket) joined Australia’s Minister for Resources Madeleine King MP (red jacket) and Minister for Trade and Tourism, Senator Don Farrell (centre) at a critical minerals industry roundtable in September, facilitated by the Australia-Korea Business Council (AKBC).
Cornerstone deposit
The Dubbo Project is ASM’s cornerstone critical minerals deposit which will produce a range of rare earth and critical mineral oxides essential to the global energy transition.
ASM 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.
About the RE program
ASM’s RE Options Assessment and Pilot Program will enable the company to identify alternative, capital-efficient and nearer-term options for producing REEs at the Dubbo Project before commencing the FEED services contract and undertaking an updated feasibility study on the construction and operation of the project.
This program will involve engineering, sampling, metallurgical testing and a pilot program at ASM’s pilot facility located at ANSTO, New South Wales.
ASM will work with international partners, DRA Global and Stantec (TSX:STN), as well as local service providers Mining One and Core Metallurgy to deliver this program.
This work is critical to ASM progressing key funding activities and taking a final investment decision (FID) on the Dubbo Project, which is targeted for the first half of 2026.
Funding support
In a media release, Federal Minister for Resources Madeleine King said: “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.”
This funding support is in addition to ASM’s recent capital-raising activities and current discussions with the Export-Import Bank of the United States (US EXIM) regarding an application for funding under the Engineering Multiplier Program.
Together, this funding will enable the company to advance critical activities to reach FID on the Dubbo Project and transition into the construction phase.