Australian Strategic Materials (ASM) has confirmed the potential of a heap leach development pathway to deliver significant cost reductions and streamlined rare earth production.
The scoping study, part of ASM’s rare earth options assessment (REOA), explores a first-phase development targeting the production of high-purity neodymium-praseodymium (NdPr), dysprosium (Dy) and terbium (Tb) oxides using heap leach technology.
The new flowsheet has cut forecast capital expenditure by over $900 million, a 56 per cent reduction from the $1.678 billion outlined in ASM’s 2021 optimisation feasibility study to an estimated $740 million.
“The heap leach scoping study represents a pivotal moment in ASM’s evolution,” ASM managing director and chief executive officer Rowena Smith said.
“By prioritising rare earth production through this approach, we are de-risking project execution, accelerating our pathway to production, and positioning the Dubbo project strongly to take advantage of the strategic opportunities before us in global rare earth markets.”
The project’s new design focuses on processing one million tonnes of material per annum over a 42-year mine life, producing an average 1242 tonnes of rare earth oxides per year between years 3–15, including 1157 tonnes per annum (tpa) of NdPr oxide, 13tpa of Tb oxide and 72tpa of Dy oxide.
Operating costs are projected in the lowest quartile among ex-China producers, with life-of-mine C1 cash costs of $US47 per kg for NdPr, $US506 per kg for Tb, and $US147 per kg for Dy.
The study forecasts a pre-tax net present value discounted by eight per cent of up to $1.47 billion and an internal rate of return of 22.9 per cent based on pricing from Adamas Intelligence.
“With China tightening export controls on dysprosium and terbium, concerns over secure supply are growing,” Smith said.
“ASM’s unique mine to metals strategy is now more crucial than ever in addressing supply chain vulnerabilities exposed by recent geopolitical shifts.”
While the results are promising, ASM cautioned that the study is preliminary, and further work is required before a final investment decision is made.
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