Australian Strategic Supplies (ASX:ASM,OTC Pink:ASMMF) mentioned it has been awarded AU$5 million below the Australian authorities’s Worldwide Partnerships in Important Minerals (IPCM) Program.
IPCM is an AU$20 million program launched this yr to “help early to mid-stage vital minerals tasks that contribute to constructing end-to-end provide chains with Australia’s worldwide companions within the vital minerals sector.”
Australian Strategic will use the cash acquired to help work to determine potential lower-capital and shorter-implementation pathways to uncommon earths manufacturing at its Dubbo undertaking in New South Wales.
The quantity is along with a AU$6.5 million grant acquired by Australian Strategic from the federal government’s Important Minerals Growth Program final yr. It was supplied for the development of undertaking design components.
The corporate mentioned the brand new funds recognise its strategic significance as a future producer of uncommon earths and important minerals equivalent to zirconium, niobium and hafnium, that are key to the defence business.
Australian Strategic mentioned that it’s going to match the grant to additional help actions at Dubbo.
“With this funding, we will undertake necessary work to determine decrease capital and shorter implementation pathways to unlock uncommon earth manufacturing on the Dubbo Challenge and guarantee a centered completion of our ultimate FEED,” mentioned Australian Strategic Managing Director and CEO Rowena Smith, whereas thanking the Australian authorities for its help.
“Authorities help to refine uncommon earths is necessary for our sovereign capabilities and can assist our buying and selling companions meet their financial, nationwide safety and emission discount commitments,” said Madeleine King, minister for sources and minister for Northern Australia, in a separate assertion on Tuesday (October 15).
In March of this yr, Australian Strategic additionally acquired a non-binding letter of interest from the Export-Import Financial institution of the US concerning as much as US$600 million in debt funding to help the undertaking’s development.
Situated roughly 400 kilometres northwest of Sydney, Dubbo is predicted to ship as much as 1,000 native jobs in the course of the development interval and roughly 270 jobs as soon as operational.
Australian Strategic is focusing on a ultimate funding resolution for Dubbo inside the first half of 2026.
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Securities Disclosure: I, Gabrielle de la Cruz, maintain no direct funding curiosity in any firm talked about on this article.