Quarterly Activities Report to 30 June 2024

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Quarterly Activities Report to 30 June 2024

Posted on by Ian Donabie

We are pleased to advise our Quarterly Activities Report to 30 June 2024 has been released.

In line with ASM’s strategic business priorities, this Quarter, the Company:

  • Delivered several successful optimisations of the flowsheet and design of the Dubbo Project. These included demonstrating a simplified flowsheet design for the production of high-purity hafnia and identifying economic benefits in an alternative niobium oxide circuit. The Company commenced testwork on an alternative circuit for rare earth production (RE Options Assessment) which will continue for the remainder of CY2024. These significant achievements highlight the Dubbo Project’s capacity to produce products that meet growing global demand and identify promising opportunities to reduce both capital and operating expenditures;
  • Executed an Option Agreement with Caspin Resources Limited to provide ASM with an option to earn up to 75% of the rare earth element rights in Caspin’s Mount Squires Project through staged earn in rights;
  • Strengthened its balance sheet by completing a capital raising consisting of an institutional placement and rights issue to raise ~A$16.6 million which positions ASM to undertake activities for progression of final stage engineering for the Dubbo Project in 2024; and
  • Received a non-binding and conditional Letter of Interest from Export Development Canada to provide a debt funding package of up to A$400 million for the construction and execution phase of the Dubbo Project.
Read the Quarterly Report

REE Whitepaper with Mining Journal

Posted on by Ian Donabie

The security and sustainability of critical mineral supply chains continues to be at the forefront of national policy development and international partnership ambitions. As these discussions evolve, Australian Strategic Materials (ASM) has teamed up with Mining Journal and MiningNews.Net to produce a whitepaper focused on rare earth elements markets, their challenges and their opportunities. This foundational document provides a grounding in the realities of the REE space to help inform a range of stakeholders.

Read the REE Whitepaper

The REE Revolution: Foreword by Rowena Smith

Rare earth elements (REEs) are playing a leading role in the globally shared ambition to build diverse, resilient and sustainable critical minerals supply chains. With a broad range of end uses – from clean energy technologies and semi-conductors to medical devices and defence applications – the relevance of REEs in supporting a sustainable and secure future cannot be overstated.

As demand for these materials continues to grow, the importance being placed on increasing production and enhancing processing capability is illustrated by the fact REEs appear on the official critical minerals lists of Australia, Canada, the EU, India, Japan, the Republic of Korea, the UK and the US. These strategically developed lists are driving activity within the resources sectors of the relevant jurisdictions and have been the basis for the policies and partnerships developing between those countries with the shared objective of mitigating risk within an existing supply chain dominated by a single jurisdiction.

Australia has an essential role to play in the development of this geopolitically sensitive market.

Rowena Smith, Managing Director & CEO, Australian Strategic Materials

With a significant endowment of REEs and as an established global leader in the extraction and processing of raw materials, Australia has an essential role to play in the development of this geopolitically sensitive market.

Through engagement and agreements, Australia has taken positive steps to enhance cross-jurisdictional opportunities with countries including the US, Canada, the Republic of Korea, Japan, the EU and Vietnam. These enhanced relationships are looking to develop trade, investment and partnership opportunities within the critical minerals sector but there is still more to be done if we are to fully leverage this generational opportunity.

The 2024 Australian Federal Budget placed an emphasis on Australia’s ability to ‘add value’ to its critical minerals endowment – providing incentives to do more processing activity on Australian shores. It is a commendable ambition and one that one that we should continue to strive for when specifically discussing REEs. But it will not come without its challenges. Delivering on this ambition will require investment and support in both project development and workforce capability.

At Australian Strategic Materials (ASM), we are progressing the development of our Dubbo Project in New South Wales. Here we will extract, separate and refine light and heavy REE oxides. Our refining capability has been developed in partnership with Australia’s Nuclear Science and Technology Organisation (ANSTO) over many years and represents sovereign technical knowhow and IP integral to the successful delivery of the project and broader growth of this sector.

I hope this publication – developed in partnership with Mining Journal – provides some insights into the compelling nature of the global REE opportunity and why Australia should be positioning itself at the forefront of the revolution.

Read the REE whitepaper

Toongi Soil Carbon Project registered

Posted on by Ian Donabie
Core samples taken in 2023 will provide the baseline for the project

We’re taking an innovative approach to carbon farming.

Since 2021, our subsidiary Toongi Pastoral Company has been working to identify opportunities to capture and store carbon at the Dubbo Project as part of the Government’s Australian Carbon Credit Unit (ACCU) Scheme.

The Scheme encourages businesses to run projects that reduce emissions or store carbon, by using new technology, upgrading equipment, changing business practices, and changing the way vegetation is managed. Measured increases of in-soil carbon content can earn ACCUs, which can potentially be offset against emissions.

Earlier this year, we were pleased to receive confirmation from the Clean Energy Regulator that the Toongi Soil Carbon Project has been registered as an eligible offset project under the Scheme.

As we continue the development of the Dubbo Project, ASM is committed to supporting the drive toward net zero. Through innovative projects such as this, as well as actively managing and minimising greenhouse gas emissions, we aim to continuously improve our carbon footprint and meet our emission reduction targets.

Learn more about our approach to sustainability

Dubbo Project Community Newsletter

Posted on by Ian Donabie
Trial sites to grow woody biomass crops at Toongi will be part of the NSW Climate Change Fund’s Biomass for Bioenergy Project

ASM’s latest Dubbo Project Community Newsletter provides a wrap-up of the project progress we’ve made and highlights where the ASM team has continued to build positive partnerships with local stakeholders.

In recent months a number of sustainability initiatives at the Dubbo Project have been progressed or completed, including:

  • The signing of a contract with the NSW Department of Primary Industries to demonstrate how woody biomass crops can potentially be integrated into land management options for ASM’s subsidiary, Toongi Pastoral Company.
  • Completion of our annual vegetation and Pink-Tailed Worm-Lizard survey in partnership with Area Environmental.
  • Confirmation from the Clean Energy Regulator that the Toongi Soil Carbon Project has been registered as an eligible offset project under the Australian Government’s Emissions Reduction Fund.

You can learn more about these and other initiatives in our latest newsletter.

Read the Community Newsletter

KMP hosts Dubbo Regional Council delegation

Posted on by Ian Donabie

We’re strengthening ties between Dubbo and Ochang to create an alternative end-to-end critical minerals supply chain.

ASM’s Korean Metals Plant (KMP) in Ochang, South Korea has hosted a delegation from the Dubbo Regional Council. As part of a self-funded trip to Korea and Japan, the delegation took the opportunity to see how ASM’s world class facility is manufacturing the high-tech metals and alloys needed for the global energy transition.

Our metals and alloys are the critical ingredient for the permanent magnets used in advanced clean technologies such as electric vehicles and wind turbines. Ultimately, the KMP will use the rare earth oxide feedstock processed at our Dubbo Project.

ASM’s Dubbo Project is located 25km south of Dubbo in central-western NSW. A globally significant resource of rare earths and critical minerals, once operational the Dubbo Project will mine, separate and refine a wide range of oxides, before metallising at our own plant(s) or shipping to global customers.

It’s our mine to metals strategy…

Sincere thanks to Dubbo Mayor Mathew Dickerson and the Dubbo Regional Council team for taking the time to learn more about our operations in South Korea.

We’re looking forward to building the ties between the two locations, in support of our alternative critical minerals supply chain.

ASM improves Sustainalytics Risk Rating

Posted on by Ian Donabie
ASM takes a comprehensive approach to ESG activities across its business. Watch Managing Director and CEO Rowena Smith discuss some of the major milestones already delivered and our future objectives, with Mining Journal and MiningNews.Net.

Australian Strategic Materials (ASM) is pleased to confirm it has received its second annual public environmental social and governance (ESG) Risk Rating from Morningstar Sustainalytics, improving to a 27.7 Medium risk rating from a 32.6 High rating in 2023.

The global ESG Risk Ratings measure a company’s exposure to industry-specific material environment, social and governance risks and how well a company is managing those risks.

Significant improvement

This latest rating positions ASM in the top 10% of companies globally within the Diversified Metals-Mining Industry Group.

“Our latest rating represents a significant improvement in overall performance and is recognition of the strategic work we have conducted to strengthen our ESG management,” said Ms Agata Carrabs, VP Risk and Corporate Services.

“ASM is committed to ensuring it operates to high ESG standards and recognises the importance of ESG reporting to identify, assess and manage ESG risks across the business,” said Ms Carrabs.

As ASM establishes itself as a vertically integrated producer of critical metals for sustainable energy solutions, advanced technologies and new growth industries, the Company’s approach to sustainability and ESG activities is core to delivering ASM’s unique mine to metals strategy.

Learn more about our approach to ESG
Review our Sustainalytics Risk Rating

Quarterly Activities Report to 31 March 2024

Posted on by Ian Donabie

We are pleased to advise our Quarterly Activities Report to 31 March 2024 has been released.

In line with ASM’s strategic business priorities, this Quarter the Company:

  • Received a non-binding and conditional Letter of Interest (LoI) from the Export-Import Bank of the United States (US EXIM) to provide a debt funding package of up to US$600 million for the construction and execution phase of the Dubbo Project;
  • Appointed global engineering company Bechtel to conduct Front-End Engineering Design (FEED) services for the Dubbo Project;
  • Submitted an application to cover >80% of the Bechtel FEED services contract to US EXIM’s Engineering Multiplier Program (EMP) and received a non-binding and conditional Letter of Interest from US EXIM to provide a debt funding package of ~US$32 million in support of this application;
  • Progressed non-process infrastructure Study work and other critical early establishment work at the Dubbo Project; and
  • Received an improved ESG Risk Rating from Morningstar Sustainalytics, positioning ASM in the top 10 per cent of companies globally within the Diversified Metals-Mining Industry Group.

Subsequent to the conclusion of the Quarter, ASM made material announcements related to:

  • The successful completion of an institutional placement to raise A$15 million and the Company’s intention to undertake an Entitlement Offer to target up to approximately A$5.2 million; and
  • The receipt of a non-binding and conditional Letter of Interest from Export Development Canada to provide a debt funding package of up to A$400 million for the construction and execution phase of the Dubbo Project.
Read the Quarterly Report

Growing North American support builds momentum for Dubbo project funding process

Posted on by Ian Donabie

Australian Strategic Materials (ASM) has received a non-binding and conditional Letter of Interest (LoI) from Canada’s official export credit agency, Export Development Canada (EDC), indicating support for EDC to provide a direct lending debt funding package of up to A$400 million for the construction and execution phase of its rare earths and critical minerals Dubbo Project.

Key points:

  • EDC LoI is additional to A$200M Letter of Support received from EFA and the recently announced LoI from US EXIM for US$600M (A$923M).
  • Recent interest stems from the strong policy alignment between Australia and North American jurisdictions.
  • EDC’s LoI is supported by potential equipment and services supply from Canadian companies for the execution phase of the Dubbo Project.
  • EDC’s indicative financial support increases sourcing flexibility and demonstrates the growing confidence in a shared financing for the Dubbo Project.

We are thrilled with the support received to date from prospective financiers for the Dubbo Project, especially this latest letter of interest from Export Development Canada. Our focus has been on building strategic partnerships in North America that support the development of our mine to metals strategy.

Rowena Smith, ASM Managing Director & CEO

Read the ASX announcement

Mount Squires Project Option Agreement to unlock potential further rare earth supply

Posted on by Ian Donabie

Australian Strategic Materials (ASM) is pleased to advise that it has executed an exclusive option agreement with Caspin Resources Limited (Caspin) (ASX:CPN) to enter into a joint venture agreement to earn up to 75% of the rare earth element (REE) rights in Caspin’s Mount Squires Project, located in the West Musgrave region of Western Australia.

Highlights:

  • Consistent with its mine to metals strategy, ASM has identified a potential supplementary rare earth supply, that includes a significant proportion of high value heavy rare earths
  • Subject to metallurgical testing and drilling, this source may be suitable for processing at ASM’s planned separation and refining facility at the Dubbo Project
  • Agreement to provide ASM with an option to earn up to 75% of the REE rights in Caspin’s Mount Squires Project through staged earn in rights
  • REE metallurgical testwork and drilling to be undertaken at the Mount Squires Project over the next 3-9 months prior to ASM deciding whether to exercise its option to enter into a joint venture agreement with Caspin
Read the ASX announcement
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