Nine News showcases the benefits of the Dubbo Project, ASM’s clean metal production and outlines the importance of keeping critical material supply chains in Australia.
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ASM’s parent company Alkane Resources has announced that shareholders have approved the demerger of ASM.
Key points:
Chairman Ian Gandel commented, “The board is delighted that Alkane shareholders have supported this critical corporate initiative for our company with such an overwhelming majority. Indeed, in excess of 99.9% of votes cast at the meeting were in favour of the Demerger transaction
“During implementation planning, and with the appointment of David Woodall as Managing Director of ASM earlier in the year, we are already seeing the benefits of a clear strategic focus for both companies.”
Australian Strategic Materials’ (ASM) Korean research and development partner, Ziron Tech has completed its preliminary work on the metallisation of neodymium oxide feed producing approximately 1kg of neodymium metal alloy in the laboratory from its patented reduction process in South Korea. The JV is targeting 45% less energy use in its rare earth metallisation process than the current industrial process.
Highlights:
This is the first stage of the production of critical metals used in a range of sustainable technologies and new manufacturing industries such as renewable energy and electric vehicle production.
ASM, with its Korean JV partner, will continue to progress the innovative low emission, high purity metal refining technology to produce metals of zirconium, titanium, rare earths and other critical materials for the renewable energy, speciality alloys and permanent magnet markets.
As noted previously, the commissioning of the electrorefining section of the pilot plant, which will produce high purity metal, is planned in July 2020. Further pilot plant runs are planned to produce neodymium, praseodymium, and other rare earths in metallic form.
Australian Strategic Materials Managing Director, David Woodall said: “This is a major milestone in ASM’s integrated strategy that includes clean metal production for all products from the development of the Dubbo Project in Central West NSW. This integration of metal production into ASM’s business is consistent with the Australian Government’s objective of adding value within Australia, while ensuring supply security and stability of these critical materials to global and domestic Australian manufacturing sectors.”
ASM and its JV partner continue to progress the second phase of its metallisation strategy focussing on the production of zirconium metal in July 2020, focused on delivering significantly improved economics of its Dubbo project as well as giving it an involvement in the wider commercialisation of a breakthrough technology.
Highlights include:
ASM’s Korean research and development partner, Ziron Tech has successfully produced a titanium metal alloy with the patented reduction process at the JV’s commercial pilot plant in South Korea.
Typically, in metal production, energy costs accounted between 30 – 40% of total costs. The production of the titanium metal alloy utilising 45% less power indicates significant cost benefits to ASM’s integrated business strategy.
ASM’s Managing Director, David Woodall said: “This is a significant milestone in the development of our integrated business plan that includes clean metal production from the development of the Dubbo Project in Central West NSW. The clean metal technology can be applied to all the products from the Dubbo Project.”
As announced to the ASX on 20 May 2020, ASM’s parent company Alkane has resolved to progress with the Demerger transaction to separately list ASM on the Australian Securities Exchange (ASX), subject to shareholder approval and ASX approval for listing.
The Demerger Booklet was released to the ASX today, along with the notice of meeting for an extraordinary general meeting (EGM) of the shareholders of Alkane Resources Limited to be held on Thursday, 16 July 2020 at 10:00am (AWST).
Alkane shareholders are invited to vote at this EGM, where shareholder approval for the Demerger will be sought.
Due to the coronavirus pandemic and related issues, the meeting will be held virtually through an online portal hosted by Lumi AGM.
All information related to the demerger and online meeting can be found on the Alkane website.
Visit the demerger page on the Alkane website
The Korean Government has awarded US$4.5 million in grants to ASM’s Korean R&D partner Zirconium Technology Corporation (Ziron Tech) to use to progress its commitment to the Joint Venture (JV) with ASM. The grants were awarded as part of the Korean Government’s US$5 billion Industrial Technological Program, led by the Korean Ministry of Industry, Trade and Resources as it seeks to establish clean metal supply independence and advance material technology for future market demand.
Ziron Tech has received funding for the development of a low emission, high purity metal refining technology that can be applied to zirconium, titanium, rare earths for permanent magnet alloys. This development is occurring in JV with ASM who has the exclusive rights to the commercialisation of the technology worldwide. The technology is intended to replace conventional energy-intensive metallisation processes with a more environmentally friendly, sustainable and cost-effective alternative.
Australian Strategic Materials Managing Director, David Woodall said: “We are pleased that both ASM and the technology we are developing in partnership with Ziron Tech has been recognised by the Korean Government as critical in its journey to ensuring sovereign supply for critical materials. The technology to produce critical metals adds value to our project and is key to the growth of Korea’s and Australia’s new technology and manufacturing sectors, with the strong government focus on increasing domestic production to secure supply stability.”
The JV between ASM and Ziron Tech is finalising the commissioning of its commercial pilot plant facility to produce these high-purity metals in parallel with developing the design for the world’s first commercial-scale metal plant.
Australian Strategic Materials (ASM) is one step closer to listing on the ASX, as the board of Alkane Resources (ASX: ALK) has resolved to progress the demerger of ASM, and listing ASM on the ASX, subject to finalisation of outstanding regulatory matters and shareholder approval at an Alkane Shareholder Meeting expected to be convened in early July 2020. ASM is currently anticipated to list in mid-July 2020.
Alkane Chairman Ian Gandel said, “The turbulence experienced in global equity markets in March and April has abated to the extent that the Alkane board has decided the time is right to make the final preparations to demerge and list ASM in the coming months, subject to shareholder approval.
“Since joining in February, ASM Managing Director, David Woodall, and the ASM team have focused on distilling the key value drivers for ASM and the Dubbo Project, and have brought new focus, momentum and opportunity to the team which is working hard to realise catalysts for the Dubbo Project and the ‘Clean Metal’ metallisation technology in South Korea.
“The demerger of ASM will provide investors two opportunities to grow value; in Alkane as a growing gold exploration, development and production company, and in ASM as an exciting critical materials business leveraged to the changing world economy.”
Read the full ASX release from Alkane Resources
ASM’s $1 billion Dubbo Project in Central West NSW is an advanced polymetallic project with a large in-ground resource of zirconium, rare earth elements (including yttrium), niobium, and hafnium. This polymetallic project represents a strategic and independent supply of critical minerals for a range of sustainable technologies and future industries. The Dubbo Project is development ready, subject to financing, with the mineral deposit and surrounding land acquired, all major State and Federal approvals in place and extensive piloting and engineering completed.
ASM is currently building a pilot plant facility in South Korea to produce these high-purity metals in parallel with developing the design for the world’s first commercial-scale metal plant. This will help meet the growing demand for a new source into domestic and global markets for ASM’s range of high-purity and value-added critical metals – including zirconium, rare earth magnet metals, praseodymium and neodymium, and hafnium.
In March, the Australian Government-owned Export Finance Australia (EFA) confirmed interest in financing ASM’s Dubbo Project, stating it closely aligns with the recently announced initiative by the Australian Government to develop its “Critical Minerals” sector.
Substantial preparation has already occurred in readiness for ASM to operate as an independent listed entity. Today, Mr Woodall will be presenting at the Goldman Sachs Webinar Series. You can view the presentation here.
Australian Government-owned’ Export Finance Australia (EFA) has confirmed interest in financing Alkane Resources’ (ASX: ALK) Dubbo rare earths Project, stating it closely aligns with the recently announced initiative by the Australian Government to develop its “Critical Minerals” sector.
Alkane through its wholly-owned subsidiary Australian Strategic Materials (“ASM”) has been engaged with the Australian Government for many years, but particularly in recent months as it works to assist private business in developing Australia’s “Critical Minerals” sector.
Alkane’s Managing Director, Nic Earner, said “After extensive engagement with the Australian Government, particularly recently as part of its Critical Minerals initiative, it is pleasing to see that stated support is translating into preparedness for government agencies to act, in this case with EFA providing confirmation of its interest in being part of the financing consortium for the Dubbo Project.”
ASM’s Managing Director, David Woodall, said “It is very pleasing to see positive action by EFA. I look forward to continuing ASM’s discussions with strategic partners and offtake parties, particularly with the ongoing trade support and now potential financial support from the Australian Government. It is very clear in today’s world that security of supply chains in all manner of materials is a pressing issue, and security of Critical Minerals is one supply chain that the Australian Government is clearly identifying as a priority for government backing.”
The Dubbo Project is an advanced polymetallic project with large in-ground resource of zirconium, hafnium, niobium, yttrium and rare earth elements with a potential mine life of 75+ years. This polymetallic project is a potential strategic and independent supply of critical minerals for a range of sustainable technologies and future industries.
The Dubbo Project is development-ready, subject to financing, with the mineral deposit and surrounding land acquired, all major State and Federal approvals in place and extensive piloting and engineering completed.
The ASX announcement can be found here.
