Perth-based mining company VHM (ASX:VHM) has signed a memorandum of understanding (MoU) with the Swan Hill Rural City Council regarding the Goschen Rare Earths and Mineral Sands Project in Victoria.
The company reports the MoU aims to outline a sustainable social and economic future for the commodities in the Loddon-Mallee Region, where the Goschen Project is located.
VHM says the details have been negotiated to provide a framework for how the long-term, collaborative partnership will operate between the company and the council, while also aiming to maximise social and economic investment outcomes for residents in the greater Loddon-Mallee Region.
The MoU defines shared or co-dependent responsibilities around job creation, training, and development, local infrastructure planning and use, indirect project economic opportunities, and government funding advocacy. VHM also notes the agreement covers environmental and social development outcomes for the mutual benefit of the community and company shareholders.
This is the second MoU signed between a local government as VHM recently signed one with Gannawarra Shire Council, affirming the parties’ mutual and long-term investment in the Loddon-Mallee Region, while also demonstrating the ‘strong’ support for the project in the region.
“Formalising the relationship between VHM and the councils is a key indication of our mutual respect and intent to create positive opportunities for the people of Gannawarra and Swan Hill council communities”
VHM Managing Director Graham Howard says: “Formalising the relationship between VHM and the councils is a key indication of our mutual respect and intent to create positive opportunities for the people of Gannawarra and Swan Hill council communities.
We look forward to continuing the close working relationship with the councils to ensure the local community benefits from employment opportunities and contributions to the local and regional economy.”
VHM reports the project provides ‘strong’ potential to be the foundation source of social and economic growth for the region through its over 20-year mine life operation. Construction and ongoing operations of the Goschen Project are expected to add more than $2 billion to the Loddon-Mallee economy, and an estimated $1.3 billion to the Victorian economy.
Additionally, the company says detailed contract negotiations for the MoU offtake agreement with Shenghe is continuing, with both parties agreeing to extend the target date for finalising the formal agreement to 30 June 2023.
VHM is a Perth-based mining company focused on developing the Goschen Rare Earths and Mineral Sands Project in northwest Victoria. The project hosts a rare earth deposit of 413,107 tonnes of total rare earth oxide (TREO) with an accompanying mineral sands resource, and a proved and probable ore reserve of 198.7 million tonnes.
Images: VHM Ltd
