ASM secures AU$5 million government grant for Dubbo rare earth project development
October 15, 2024

Australian Strategic Materials Limited (ASM) has received an AU $5 million grant under the Australian Federal Government’s International Partnerships in Critical Minerals (IPCM) Program. The grant will be matched by ASM and used to support efforts to identify potential lower capital and shorter implementation pathways to rare earth production (RE Options Assessment and Pilot Program) at the company’s Dubbo Project in New South Wales. The RE Options Assessment and Pilot Program will be conducted as a preliminary step before the Front-End Engineering Design (FEED) services contract awarded to US-owned Bechtel Mining and Metals Inc. in March 2024.
The Dubbo Project is ASM’s main critical minerals deposit, which will produce a variety of rare earth and critical mineral oxides that are essential for the global energy transition. The IPCM Program was launched in February 2024 to provide funding for critical minerals businesses to develop end-to-end supply chains with Australia’s international partners.
In a media release, Minister for Resources the Hon Madeleine King MP, said, “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.”
The RE Options Assessment and Pilot Program will enable ASM to identify alternative, capital-efficient and nearer-term options for producing rare earth elements at the Dubbo Project before commencing the FEED services contract and conducting an updated feasibility study on the construction and operation of the Dubbo Project. The RE Options Assessment and Pilot Program will involve engineering, sampling, metallurgical testing, and a pilot programme at ASM’s pilot facility located at ANSTO, New South Wales. ASM will collaborate with international partners DRA Global and Stantec, as well as local service providers Mining One and Core Metallurgy to deliver this programme. These activities are critical to ASM progressing key funding activities and making a final investment decision (FID) on the Dubbo Project, which is targeted for the first half of 2026.
“This funding recognises the Dubbo Project’s national and international strategic importance. With this funding, we will be able to undertake important work to identify lower capital and shorter implementation pathways to unlock rare earth production at the Dubbo Project and ensure a focused completion of our final FEED,” said ASM Managing Director and CEO, Rowena Smith.
“Working in collaboration with international strategic partners is critical if Australia is to play a leading role in building alternative, end-to-end rare earths and critical minerals supply chains. We thank the Australian Government for their generous support to enhance Australia’s rare earth production and processing capability,” said Smith.
This funding support is in addition to ASM’s recent capital raise activities and its current discussions with the Export-Import Bank of the United States (US EXIM) regarding ASM’s application for funding under the Engineering Multiplier Program. Together, this funding will enable the company to advance critical activities to reach FID on the Dubbo Project and transition into the construction phase.
ASM is building a mine-to-metals business to extract, refine and manufacture high-purity metals and alloys for a global customer base. The Dubbo Project will develop a secure, sustainable source of rare earths and critical minerals, strengthen mid-stream processing capability in Australia, drive renewable energy adoption and create jobs and investment in regional Australia.