Argus Media Limited

05/18/2023 | News release | Distributed by Public on 05/18/2023 02:53

Australia approves A$49mn for critical minerals grants

The Australian government has approved around A$49mn ($32.5mn) of grants to 13 Australian critical mineral projects across the country on 18 May in a bid to accelerate their development, which will help diversify supply chains.

A total of around A$29mn in grants will be awarded to seven projects in Western Australia (WA), with A$11.4mn going to three projects in New South Wales (NSW) and A$8.4mn to three projects in Queensland.

"The 13 projects to receive funding under the Critical Minerals Development Program grants include plans to produce key inputs for lithium-ion batteries for electric vehicles, and to support supply chains for advanced manufacturing for aerospace, medical, energy and defence applications", Australia's federal resources minister Madeleine King said.

ASX-listed Australian Strategic Materials (ASM) is due to receive A$6.5mn for its Dubbo project in NSW that could produce key oxides of zirconium, niobium, hafnium and rare earths. ASM also aims for the project to provide raw materials to its operating Korean Metals plant once the Dubbo mining project begins operations, and procured long-term rare earth oxide supplies from Vietnam Rare Earth in December.

Magnesium firm Magnium Australia will receive A$6.25mn to aid the commercialisation of its magnesium metal clean-extraction patented technology and for its magnesium refinery pilot plant in Western Australia's Collie. The pilot plant will have a potential production capacity of 800 t/yr of high purity magnesium metal and received A$5mn of grant from the WA government's Collie Industrial Transition Fund, according to an announcement in April.

ASX-listed Northern Minerals will also receive A$5.9mn for the development of its Browns Range project in WA's Halls Creek to produce heavy rare earths such as dysprosium and terbium. A definitive feasibility study is likely to be completed during October-December, with a final investment decision in January-March 2024, according to Northern Minerals. The firm signed a 30,500t supply contract with Australian minerals producer Iluka Resources in October 2022.

Battery materials manufacturer Australian Energy Storage will receive A$5.5mn for its precursor cathode active material (PCAM) manufacturing plant in WA's Kwinana. The plant is expected to have 10,000 t/yr of production capacity and the firm was in negotiations to procure critical minerals supplies from US-based Albemarle and Australian resources firm BHP, according to its business presentation released in August 2021.

ASX-listed International Graphite and graphite developer Ecograf will receive A$4.7mn and A$2.9mn respectively, to support their graphite projects. International Graphite plans to use the fund to advance feasibility studies for its Springdale graphite mine, which will be integrated with its graphite battery anode materials facility in WA's Collie. Ecograf is setting up a battery anode material facility in NSW, expected to be commissioned early next year, it said.

Major lithium firm IGO will receive A$4.6mn in grants for its project with Wyloo Metals to develop an integrated battery material facility in WA's Kwinana. The proposed facility involves integrating a downstream nickel refinery with a high-value nickel-dominant PCAM manufacturing plant. A feasibility study is underway and it secured land from WA's government in April. This will likely be Australia's first commercial production of PCAM.

"The grants will support Australia's new Critical Minerals Strategy, to be released shortly and which will outline how Australia can capture the significant opportunity of growing its critical minerals processing sector", federal resources minister King added.

Other recipients of the grants include fellow Australian firms Tungsten Metals, Tungsten Mining, Clareville, Queensland Pacific Metals, High Purity Quartz and Evolution Mining.

By Joseph Ho