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The REE Revolution: Foreword by Rowena Smith

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.

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.

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

Australian Strategic Materials (ASM) is pleased to advise that its subsidiary Australian Strategic Materials (Holdings) Pty Ltd (ASMH) has appointed global engineering company Bechtel Mining and Metals, Inc (Bechtel) to conduct Front-End Engineering Design (FEED) services for ASM’s rare earths and critical minerals Dubbo Project in New South Wales (NSW).

Highlights

• New contract will deliver critical path to final investment decision for the Dubbo Project
• Strategic partnership with Bechtel further enhances new funding opportunities with US government entity
• Application submitted for Export-Import Bank of the United States’ (US EXIM) Engineering Multiplier Program (EMP), to cover >80% of FEED contract costs
• Letter of Interest issued by US EXIM in support of ASM’s EMP application.

Australian Strategic Materials (ASM) is pleased to announce it has received a non-binding 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 (A$923 million) for the construction and execution phase of the rare earths and critical minerals Dubbo Project.

Highlights

• LoI from US EXIM bank for up to US$600M (A$923M) in debt financing package for Dubbo Project
• US EXIM is the official export credit agency of the US federal government
• US government support is a catalyst to increase customer and financing focus in North America
• LoI from US EXIM is in addition to A$200M Letter of Support previously received from EFA
• Dubbo Project is a construction ready, globally significant and long-life rare earths and critical minerals project

Australian Strategic Materials (ASM) is proud to be featured in the latest Australian Critical Minerals Prospectus, produced by the Australian Trade and Investment Agency (Austrade).

The Prospectus showcases investment-ready critical minerals projects that have significant potential to address anticipated production shortfalls, build supply chain security, and deliver progress on a net zero future.

ASM’s cornerstone Dubbo Project, located in Central West New South Wales, is a globally significant rare earths and critical minerals deposit that includes neodymium, praseodymium, dysprosium, terbium, zirconium, niobium and hafnium. The project has all major approvals in place and is construction ready.

On the launch of the prospectus, Minister for Resources, the Hon Madeleine King MP, said: “Australia’s critical minerals are key to the world’s energy transformation.

“But we need to attract investment to get these minerals out of the ground, to process them here, to build the batteries, wind turbines and solar panels required make the switch to a lower carbon economy.

“This prospectus will help attract the investment we need to build new industries, create jobs and reduce global emissions.”

The ASM team enjoyed a packed agenda at the 2023 International Mining and Resources Conference +Expo (IMARC), participating in several insightful panel discussions, engaging with a range of national and international government stakeholders and presenting the ASM mine to metals opportunity to a broad investor audience.

Participating in two panel sessions, ASM Managing Director and CEO Rowena Smith provided her thoughts on the practical steps needed to facilitate an alternative global supply of critical minerals, and the significance of partnerships at all points of Australia’s critical minerals value chain when looking to achieve this.

Following up on Rowena’s comments, Bloomberg TV conducted a live interview at the event, where she had the opportunity to further discuss ASM and Australia’s role in the creation of an alternative critical minerals supply chain.   

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With a large international audience, on the sidelines of the event ASM also participated in ‘Korea Day in Sydney’ – facilitated by Austrade and KOMIR Australia – where ASM’s General Counsel and Company Secretary Annaliese Eames presented the ASM story.

At the Mines and Money Investment Theatre, Rowena had the opportunity to walk investors through the Company’s mine to metals strategy, highlighting the progress made at both our Dubbo Project and Korean Metals Plant over the past year.

And the Dubbo Project was also a hot topic of conversation when the team had the opportunity to speak directly to federal Minister for Resources the Hon Madeleine King MP and New South Wales Minister for National Resources, the Hon Courtney Houssos MP.

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With a unique ore body comprising light and heavy rare earths, zirconium, hafnium and niobium, strong financials, and compelling ESG credentials, the Dubbo Project represents a robust investment in the national interest and a strategic opportunity for Australia.