Australian Strategic Materials receives gov’t backing for critical metals

The Australian Government is positioning Dubbo as a central hub in its strategy to enhance Australia’s critical minerals and rare earths industry in New South Wales.

This initiative includes a funding boost for Australian Strategic Materials Limited, a key player in the sector.

Under the International Partnerships in Critical Minerals Program, the Commonwealth will provide $5 million to ASM to fund up to 50 per cent of a study to discover more efficient refining methods for rare earths at its mine and processing plant.

This funding builds on a $6.5 million grant from last year’s Critical Minerals Development Program, which supports the Dubbo project’s mining, separation, and refining processes.

ASM has also received a non-binding Letter of Interest from the Export-Import Bank of the United States for up to US$600 million to assist with project construction.

Additionally, Export Finance Australia has provided a letter of support for $200 million in debt funding.

The Dubbo Project is set to produce critical minerals, including zirconium, niobium, and hafnium, along with various rare earth elements, many of which are vital to the defence industry.

The project is expected to create up to 1,000 local jobs during construction and approximately 270 permanent positions once operational.

Madeleine King, Minister for Resources and Northern Australia, emphasised the government’s commitment to supporting the critical minerals and rare earths industry.

“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,” she stated.