Northern Minerals (ASX:NTU) has received a $5.9 million grant from the Australian government to progress a Definitive Feasibility Study (DFS) at its Browns Range Heavy Rare Earth Project in Western Australia.
The grant is part of the Australian government’s Critical Minerals Development Program, which aims to help Australian projects secure investments and commercial offtake agreements, expand knowledge of critical minerals, and support economic development and jobs in regional communities.
Northern Minerals says it is progressing the DFS for a commercial-scale mining operation and beneficiation plant at Browns Range to a level suitable for making a Final Investment Decision (FID) and securing funding for the project to enable the delivery of rare earth concentrates under the offtake agreement with Iluka Resources (ASX:ILU).
The company anticipates the DFS will be completed in Q4 2023, with the FID expected in Q1 2024.
Commenting on the grant, Northern Minerals Executive Chairman Nicholas Curtis says: “We are extremely proud that our Browns Range Project has been seen as a worthy recipient of grant funding from the Australian government’s Critical Minerals Development Program, and we thank the Hon Madeleine King MP and her team for this recognition.
“We understand that there were a significant number of applicants, and for NTU to be awarded $5.9 million of the program reinforces the strategic nature of our Dy and Tb heavy resource base…”
We understand that there were a significant number of applicants, and for NTU to be awarded $5.9 million of the program reinforces the strategic nature of our Dy and Tb heavy resource base and its role, along with our offtake partner Iluka Resources, in fostering new supply chains for critical minerals that are essential to global electrification and the transition to a low carbon economy.”
As part of its grant application, Northern Minerals identified 3 key work programs to which it will apply the funds, including resource definition drilling at the Wolverine deposit, advanced front-end engineering and design (FEED) work, and early work activities.
The company reports these activities will assist it in obtaining project finance to facilitate a new downstream rare earths supply chain in Western Australia, which will also support regional development and the transition to zero emissions.
Northern Minerals is an ASX-listed heavy rare earth developer focused on its wholly owned Browns Range Project in northern Western Australia. The project is considered prospective for dysprosium and terbium, which are ‘critical’ in the production of dysprosium-neodymium-iron-boron magnets used in the clean energy, military, and technology sectors.
Images: Northern Minerals Ltd
