US uranium producer Energy Fuels (TSX:EFR) has stepped up to fund Astron Corp Ltd’s rare earths mine at Minyip, Victoria, with a $183 million investment.
As the fourth-largest rare earths project outside China and the second-largest in Australia, the project has global significance, as noted by Astron Corp CEO Tiger Brown.
The proposed mine is one of three mineral sands mines in planning stages in western Victoria. WIM Resources submitted an environmental effects statement for its Avonbank project late last year and VHM submitted an environmental effects statement for its Goschen mineral sands project near Swan Hill in November.
Crucial to renewable energy transition
Rare earth elements are crucial for wind turbines and electric vehicles, making them key to the renewable energy transitions of both the Australian and US governments.
Production from Astron’s mine is slated to commence in 2026 with the company seeking an additional $240-$250 million in loans by the end of 2024 ahead of a construction start in 2025. Having submitted a work plan, Astron is now awaiting final approval from the Victorian Government.
The rare earths concentrate will contain trace amounts of radioactive elements such as uranium and thorium. Brown assured that these would be safely managed under an approved radiation management licence from Victoria, adhering to the highest operational health and safety standards.
However, local farmers are disappointed by the lack of consultation around the planned mine, which will see a sharp increase in traffic with freight movements of about one truck per hour out of the mine site expected.
Brown acknowledged these concerns, stating the company’s commitment to upgrading roads and addressing community issues.
Astron initially secured a mining licence for the Donald Rare Earths and Mineral Sands Project in 2010, covering 2,500 hectares in Victoria's Wimmera region, with an additional 40,000 hectares under exploration.
Energy Fuels plans to ship the mined rare earth element concentrate from western Victoria to process it into rare earth oxides at its facility in White Mesa Hill, Utah.