Heap Leach Scoping Study outlines strategic first phase to accelerate supply of rare earth materials restricted under Chinese export controls
Australian Strategic Materials (ASM, the Company) has released the outcomes of its Heap Leach Scoping Study, marking a pivotal advancement in the Company’s development strategy for the Dubbo Project in central-west New South Wales.
This Scoping Study outlines a new, low-cost staged development pathway for the Dubbo Project, focused initially on the production of rare earth oxides – neodymium-praseodymium (NdPr), dysprosium (Dy) and terbium (Tb) – using a simplified heap leach flowsheet.
The new model reduces upfront capital requirements, significantly lowers operating costs, and accelerates the timeline to production. It also enhances the project’s strategic relevance as allied nations seek to urgently diversify away from rare earths supply chains dominated by China.
Key outcomes of the Scoping Study include:
- A materially low capital cost estimate of AUD 740 million, representing a reduction of over AUD 900 million compared to ASM’s 2021 Optimised Feasibility Study, positions the Dubbo Project as the only oxide-producing project in Australia with a capital cost below AUD 1 billion.
- With operating costs projected in the lowest quartile globally among ex-China rare earth producers, the Dubbo Project will be one of the most cost-competitive non-China rare earth projects.
- Production of significant volumes of separated light and heavy rare earth oxides, including Dy and Tb – elements currently subject to Chinese export restrictions.
- A simplified processing route that enables a clear path to final investment decision and targeted production before 2030.
Management comment
ASM Managing Director and CEO Rowena Smith said the Scoping Study marks a major step forward for one of Australia’s most advanced critical minerals projects.
“In undertaking this Scoping Study ASM is directly responding to two critical needs: first, it offers a pathway to reduce upfront capital costs in the face of inflationary pressures and challenging market funding conditions; second, it accelerates the delivery of a viable source of rare earth oxides – particularly heavy rare earths – in a time of surging global demand. With China tightening export controls on dysprosium and terbium, concerns over secure supply are growing. ASM’s unique mine to metals strategy is now more crucial than ever in addressing supply chain vulnerabilities exposed by recent geopolitical shifts,” said Ms Smith.
“The Dubbo Project has all major approvals in place, is strategically located, and offers long-term financial returns. This new development approach aims to simplify execution and focus on delivering the rare earths the world urgently needs – particularly those under Chinese export controls.
“With established downstream capability through our Korean Metals Plant and strong engagement across allied jurisdictions, ASM is well positioned to help build the resilient, transparent supply chains now being prioritised by Australia and its partners,” she said.
Geopolitical context
The release of the Scoping Study comes a week after ASM participated in the Quad Critical Minerals Business Roundtable in Washington DC, held alongside the Quad Foreign Ministers’ Meeting. Ms Smith was part of a select Australian industry delegation alongside representatives from BHP, Lynas Rare Earths, and Jindalee Lithium.
“The Quad has rightly acknowledged that economic resilience now depends on the ability to mine, process and refine critical minerals outside China. We’re pleased to be part of those conversations and even more pleased to be delivering a solution,” said Ms Smith.
Also represented at the Quad Critical Minerals Business Roundtable was US-based MP Materials – operators of the world’s second-largest rare earth mine in Mountain Pass, California, where it extracts, refines, and separates rare earth materials. MP Materials has subsequently announced it has entered into a transformational public-private partnership with the United States Department of Defense (DoD) to “dramatically accelerate the build-out of an end-to-end U.S. rare earth magnet supply chain and reduce foreign dependency.” Demonstrating its long-term intent, the DoD has entered into a 10-year agreement establishing a price floor commitment of US$110 per kilogram for MP Materials’ NdPr products.
“The latest news from MP Materials is further demonstration of the strategic intent of the US Government to secure rare earth supply chains and the rapidly evolving market we are operating in,” said Ms Smith.
ASM’s staged development strategy at the Dubbo Project enables:
- Accelerated delivery of strategically important heavy rare earths.
- A simpler project execution model that increases fundability.
- The opportunity for a second phase expansion to produce zirconium, niobium and hafnium.
- A mine-to-metals model that is unmatched outside China.
Next steps
ASM will now progress the Heap Leach Option to a Pre-Feasibility Study, targeting completion in Q1 2026. The Company is also advancing its engagement with offtake partners, strategic investors and government funding agencies, including Export Finance Australia, US EXIM Bank and Export Development Canada, all of whom have awarded conditional debt funding packages to the project.
“There is strong and growing international support for what ASM is building,” said Ms Smith. “With the Dubbo Project moving forward, government-backed funding progressing, sales from our Korean Metals Plant accelerating and plans progressing for US expansion, we are well positioned to deliver the mine-to-metals capability our partners are seeking.”