Category: Latest News

We are pleased to advise that ASM has signed a binding agreement with Vietnam Rare Earth Company (VTRE) for the purchase of rare earth oxides from Vietnam to be used as feedstock at ASM’s Korean Metals Plant (KMP). Under the terms of the agreement, VTRE will deliver 100 tonne of product for the remainder of 2023. The pricing for the feedstock (in USD) will be determined using a formula-based mechanism referencing published market prices for neodymium-praseodymium oxide.

The agreement was signed during a ceremony at the Australian Embassy in Vietnam.

ASM Managing Director & CEO Rowena Smith said:

This agreement will ensure we have the feedstock needed to continue the ramp-up of production at KMP, as anticipated sales contracts progress this year. In sourcing the required oxides from Vietnam and building our relationship with VTRE, we are also ensuring greater oversight of our supply chain, which supports our sustainability and governance commitments to both our customers and our shareholders.

Thank you to the Australian Embassy, Austrade and Korea’s Chungcheongbuk Province, for the assistance provided throughout discussions with VTRE for this agreement.

We are pleased to advise our Quarterly Activities Report to 31 March 2023 has been released.

In line with ASM’s strategic business priorities, key activities for the Quarter included:

• Commenced Stage 1 of the Dubbo Project EPC Definition contract with Hyundai Engineering Co. Ltd (HEC)
• Delivered neodymium praseodymium (NdPr) metal production consistently in specification at the targeted daily rate, resulting in a total output of 15.1 tonnes
• Successfully completed commissioning of the strip alloy caster at the Korean Metals Plant and progressed development of customer-specific neodymium iron boron (NdFeB) strip alloys as part of ongoing negotiations of potential sales agreements
• Broadened Dubbo Project and Korean Metals Plant offtake marketing and strategic partner discussions in Europe, Japan and the USA, while continuing discussions in Korea

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ASM continues to build on our relationship with the Vietnam Rare Earth Company (VTRE), after signing a non-binding business agreement with the company in December 2022.  The agreement, which also included Korea’s Chungcheongbuk Province, was for all parties to co-operate to build a global rare earths supply chain.

In March 2023, representatives from ASM visited VTRE in Vietnam to undertake further on site and product due diligence.  As part of this visit, we were delighted to have the Australian Ambassador to Vietnam Andrew Goledzinowski, and the Chair of the local people’s party join us.

Following our visit to Vietnam, VTRE’s Chief Executive Officer and other representatives joined us at our Korean Metals Plants for a site visit and ongoing discussion for the supply of KMP feedstock.

 

We are pleased to advise that CEO Ms Rowena Smith has been appointed as Managing Director by the ASM Board, to take effect 6 March 2023.

Mr Ian Gandel, Chair of ASM, said this was a natural progression following Ms Smith’s appointment as CEO in July 2022.

“Since Rowena became CEO last year, she has led the Company through a successful Capital Raising, the commencement of the EPC Definition work for the Dubbo Project and the first sale and delivery of product from the Korean Metals Plant. These activities have placed ASM in a strong position for 2023, as we progress our Dubbo Project and ramp-up of the Korean Metals Plant.”

Ian Gandel, ASM Chair

We are pleased to advise that our Dubbo Project SSD Modification Report 1 (MOD1) has received Development Consent approval from the NSW Department of Planning and Environment following a thorough public submission and review process.

The MOD1 determination was required after our December 2021 Optimisation Study led to several design improvements in plans already approved for the Dubbo Project. These included simplifying the project’s process flowsheet and incorporating new operating strategies that would reduce impact on the Dubbo community and environment, while also reducing operating costs and improving project economics.

Congratulations to our Dubbo Project team, who completed numerous environmental studies including noise, air quality and emissions to submit the MOD1 in early 2022, and then to respond to submissions made during the public exhibition process.

Another step forward for our Dubbo Project in 2023!

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It was a pleasure to welcome our Korean Metals Plant Representative Director, Mr Sung-lea Cho, on his first trip to Australia.

During his visit, Mr Cho spent time at our Dubbo Project site and toured the project’s test work facilities at ANSTO.

With products from the Dubbo Project (once constructed) going to the Korean Metals Plant for metallisation – this visit provided Mr Cho and the team in Australia opportunity to better get to know one another, as we work together to progress ASM’s `mine to metals’ business.

Mr Cho also spent a week in the Perth office, working with the Executive team on ASM’s 2023 Business Plan.

We are excited to be getting underway with Stage 1 of our Dubbo Project EPC Definition work.

In early February, the Dubbo Project Team held a kick-off meeting with representatives from Hyundai Engineering Co. Ltd (HEC) to commence Stage 1 requirements.

During Stage 1, HEC will establish front-end engineering and design activities and progress standards development.  This work is expected to be completed in mid-2023.

We are delighted to welcome Annaliese Eames, in her first week as our General Counsel and Joint Company Secretary.

Annaliese brings over 15 years of legal, commercial, strategic and corporate governance experience to ASM.  Her depth of knowledge covers large scale project contracting, corporate, finance and intellectual property law.

ASM CEO Rowena Smith says that “Annaliese’s substantive experience is directly relevant to the growth of ASM, particularly as we look to progress development of our Dubbo Project in 2023.”

We are pleased to advise our Quarterly Activities Report to 31 December 2022 has been released.

In line with ASM’s strategic business priorities, key activities for the Quarter included:

• Strengthened balance sheet by $41.1 million via successful Capital Raise, to position the Company to undertake priority activities in 2023;
• Completed the neodymium praseodymium metal commissioning and materially progressed the NdFeB alloy commissioning at the Korean Metals Plant; and
• Negotiated with HEC for a variation to the Dubbo Project EPC Definition contract.  This was finalised after the end of the Quarter and the Notice to Proceed for Stage 1 was issued to allow work to commence.

ASM is pleased to advise that its Dubbo Project has been awarded grant funding of $10 million under Stream 2 of the NSW Government’s Critical Minerals and High-Tech Metals Activation Fund (CMAF), announced by the NSW Deputy Premier and Minister for Regional NSW, the Hon. Paul Toole MP.

Subject to the execution of binding documentation, ASM will receive the funding to support early establishment activities for the Dubbo Project.  These activities involve the upgrade of local roads and bridges to ensure high-standard road access for the Dubbo Project’s development and operation.

ASM CEO Rowena Smith thanked the NSW government, saying:

“ASM is pleased that the New South Wales government continues to provide generous support to our rare earths and critical minerals Dubbo Project. The infrastructure upgrades enabled by this grant will benefit not only the project, but also the local community and businesses.”

The total cost of the road and bridge upgrades is estimated to be $20.4 million. ASM will co-contribute $10.4 million to the cost of the works.

ASM plans to commence the upgrade activities in calendar year 2023.