ASM Secures A$5 Million Grant for Dubbo Rare Earth Project

In a significant development for the Australian mining sector, Australian Strategic Materials Limited (ASM) has been awarded a grant of A$5 million from the Australian Federal Government. This funding comes under the International Partnerships in Critical Minerals (IPCM) Program, which aims to bolster the production of critical minerals essential for the global energy transition. The grant will be matched by ASM, allowing the company to explore more efficient and cost-effective methods for rare earth production at its Dubbo Project located in New South Wales.

The Dubbo Project is a cornerstone for ASM, as it is set to produce a variety of rare earth and critical mineral oxides. These materials are vital for various technologies, including renewable energy systems, electric vehicles, and other high-tech applications. The IPCM Program, launched in February 2024, is designed to support businesses in the critical minerals sector, helping them to establish robust supply chains in collaboration with international partners.

Minister for Resources, the Hon Madeleine King MP, emphasized the importance of government support in refining rare earths, stating, "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 statement underscores the strategic significance of the Dubbo Project not only for Australia but also for its trading partners.

The RE Options Assessment and Pilot Program, funded by the grant, will serve as a preliminary step before the commencement of the Front-End Engineering Design (FEED) services contract awarded to Bechtel Mining and Metals Inc. in March 2024. This program will involve various activities such as engineering, sampling, and metallurgical testing at ASM's pilot facility in New South Wales. The collaboration with international partners like DRA Global and Stantec, along with local service providers, is expected to enhance the project's efficiency and effectiveness.

ASM's Managing Director and CEO, Ms. Rowena Smith, expressed her gratitude for the funding, stating, "This funding recognises the Dubbo Project's national and international strategic importance. 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." This highlights the company's commitment to advancing its operations and contributing to the global supply of critical minerals.

Furthermore, this funding is part of ASM's broader strategy to secure additional financial support, including discussions with the Export-Import Bank of the United States regarding funding under the Engineering Multiplier Program. The combination of these funding sources will enable ASM to progress towards a final investment decision (FID) on the Dubbo Project, which is targeted for the first half of 2026.

The A$5 million grant from the Australian Federal Government marks a pivotal moment for ASM and the Dubbo Project. As the world increasingly shifts towards renewable energy and sustainable technologies, the importance of rare earth elements cannot be overstated. This initiative not only aims to enhance Australia's capabilities in critical minerals production but also positions the country as a key player in the global supply chain. The successful execution of this project could lead to job creation, investment in regional Australia, and a more secure and sustainable future for the energy sector.