© Reuters. Australian Strategic Materials advances critical minerals mine to metals strategy
Australian Strategic Materials Ltd (ASX:ASM, OTC:ASMMF) continues to progress its ‘from mine to metals’ strategy incorporating the Dubbo Project in Central West New South Wales and its Korean Metals Plant in South Korea with firm plans set in place for 2024.
The company is building a global rare earth and critical minerals business to provide the high-tech metals needed to solve the challenges of today and the future, thus serving green energy needs.
PDAC presentation
In a presentation titled ‘Towards Net Zero’ delivered at the prestigious annual PDAC Convention in Toronto, Canada, the company’s managing director and CEO Rowena Smith outlined recent achievements in the integrated supply strategy and spoke of plans for 2024.
The Korean Metals Plant in Ochang Foreign Investment Zone around 115 kilometres south of Seoul, is in production and providing an alternative integrated supply chain for high-tech metals.
The Korean Metals Plant in South Korea.
Ramping up
ASM will continue ramping up to full capacity, initially towards 600 tonnes per annum and then in phase 2 to 3,600 tonnes.
There is a growing customer base with NdPr metal sales to Korea and NdFeB alloy sales to the USA.
The company is collaborating with other suppliers in a bid to strengthen the supply chain as raw materials are needed to feed the plant and satisfy growing demand.
Metallisation technology is being adopted at the plant and the company is continuing to develop innovative processes for the production of titanium, terbium and dysprosium.
A key outcome in Korea is to be Scope 1 and Scope 2 carbon net-zero from the commencement of operation.
Source of rare earths
ASM’s Dubbo Project, which is near the regional city of Dubbo and close to established infrastructure, is positioned to be a secure, sustainable source of rare earths, primarily for the Korean Metals Plant.
The Dubbo Project is 25 kilometres south of Dubbo.
It has a 20-year mine life based on reserves with a further 50 years of resources and boasts strong financials with estimates outlining pre-tax IRR of 23.5%, A$425 million in annual free cash flow and a A$1,678 million capital cost estimate, including contingency.
The project is construction-ready with all major approvals in place, land and water licences owned and final engineering work being carried out by Hyundai Engineering Co. (HEC) and Bechtel.
An advanced process flowsheet to produce high-purity rare earth and critical mineral oxides has been developed over 16 years in partnership with ANSTO.
Net-zero aims
As with Korea, ASM aims to be carbon net zero at the Dubbo Project and is adopting an innovative approach to biodiversity, including reducing water requirements by at least 60%.
Smith told PDAC delegates that during 2023 the company had welcomed the completion by HEC of the first phase of EPC definition and had started early establishment activities supported by $6.5 million in grant funding from the Australian Government.
She said there had been success for the ANSTO Heavy Rare Earth pilot plant, pointing to positive processing capabilities for the project.
The year had also seen non-process infrastructure (NPI) study work awarded to Bechtel and a solid residue storage facility study progressed by Stantec (TSX:STN).
2024 plans for Dubbo
This year, ASM will focus on progressing EPC definition and NPI study work and continuing early establishment activities.
The company will also continue to seek further funding via:
- bankable offtakes;
- strategic investment partners;
- further Export Credit Agency support; and
- government support.
Global support
ASM’s efforts in building an alternative supply chain for the production of high-tech metals and alloys are being supported by support at Australian and global levels.
In Australia, this is evidenced by the Federal Government’s Critical Minerals Facility and the National Reconstruction Fund.
Export credit agencies in Australia, the US, Korea, Canada and the EU are also supporting the development of sustainable supply chains while in the US, the Inflation Reduction Act and the Defense Production Act Title III are encouraging the development of supply chains at domestic and allied nations levels.
