Australian Strategic Materials (ASX:ASM) has secured grant funding of $6.5 million to support progress at its Dubbo Project in New South Wales.
The company says the funding has been issued under tranche 2 of the Australian government’s Critical Minerals Development Program (CMDP), as announced by the Federal Minister for Resources, the Hon Madeleine King MP.
Australian Strategic Materials will use the funding to progress the Dubbo project’s engineering, procurement, and construction (EPC) definition activities with respect to non-process infrastructure, subject to the execution of binding documentation.
These activities are expected to advance the project design maturity of key areas outside of the process plant and include residue storage and handling facilities, site water management, utility design and supply, greenhouse gas emission reduction studies, and site establishment planning.
The company says that the total costs of the non-process infrastructure EPC definition activities are estimated at $15.35 million, and it will co-contribute $8.85 million to the cost of the activities, which are planned to begin in June 2023
Addressing the grant funding, Australian Strategic Minerals Managing Director and Chief Executive Officer (CEO) Rowena Smith thanked the Australian Government, saying: “ASM is grateful to receive this generous support from the Australian Government for our rare earths and critical minerals Dubbo Project. As part of our commitment to strong ESG performance, this funding will allow us to optimise the final design of the project’s carbon, water and residue management.
“This is another exciting step for our Dubbo Project as we build our global mine to metals business”
This is another exciting step for our Dubbo Project as we build our global mine to metals business and look to bring new jobs and opportunities to the people of Dubbo and the region.”
Australian Strategic Materials is an ASX-listed company emerging as a producer of critical metals for new growth industries, high technologies, and sustainable energy solutions. The company is also actively working to extract, refine, and manufacture high-purity metals and alloys to supply directly to global technology manufacturers.
The company’s Dubbo project is located near the township of Toongi, about 25km south of the city of Dubbo, in central-western New South Wales. It represents the cornerstone of the company’s vertically integrated business, providing a long-term resource of rare earths and critical minerals.
The project site lies about 400km northwest of Sydney and Newcastle and is accessible via road and rail by way of Dubbo.
Images: Australian Strategic Materials Ltd
