Northern Minerals Ltd (ASX:NTU), a prominent player in Australia’s critical minerals sector, has bagged a A$5.9 million government grant to fast-track its Wolverine heavy rare earths play within the Browns Range Project.
Federal Resources Minister Madeleine King unveiled the Australian Government’s Critical Minerals Development Program today, designed to front up to 50% of the expenditure costs linked to Australia’s most prospective critical mineral assets.
Situated in WA’s far north, the Wolverine deposit is known for its dysprosium and terbium bounty — two of the key ingredients in the magnets used in clean energy, military and advanced tech solutions.
As such, Northern Minerals believes the grant emphasises the role it can play in Australia’s emerging critical minerals industry, and it continues to work towards a final investment decision in early 2024.
Local supply chains hold the key
NTU executive chair Nicholas Curtis said the company was extremely proud that Wolverine — part of the wider Brown’s Range Project — was deemed a worthy recipient for this funding package.
“We understand that there were a significant number of applicants and for NTU to be awarded $5.9 million re-enforces the strategic nature of our dysprosium and terbium heavy resource base,” he explained.
Curtis signed off by promising to work alongside offtake partner Iluka Resources to foster new supply chains for critical minerals, widely regarded as the building blocks for global electrification and the transition to a low-carbon economy.
Northern Minerals is currently working through a definitive feasibility study, which evaluates a commercial-scale mining operation and beneficiation plant at Browns Range heavy rare earths project.
Once the DFS wraps later this year, it hopes to move to a final investment decision and secure project financing to support a concentrates operation in northern WA.
What will the funding support?
Australia’s Critical Minerals Development Program has earmarked A$48.9 million for projects that support the nation’s critical minerals strategy, which entails:
- Securing investment and commercial offtake agreements for Australian projects;
- growing the nation’s capability to capture more of the critical minerals value chain; and
- supporting economic development and jobs in regional communities.
Companies that aligned with the strategy were eligible for between A$1 million and A$30 million in funding, which will support project development through to 2025.
Northern Minerals was one of 13 companies to secure funding — other recipients included fellow ASX-listers International Graphite Ltd (ASX:IG6), Queensland Pacific Metals Ltd (ASX:QPM) and Australian Strategic Materials Ltd (ASX:ASM).
As part of its application, NTU outlined three key work programs that it will apply the grant funding to, including:
- Resource definition drilling at the Wolverine deposit;
- advanced frontend engineering and design; and
- early work activities.
These initiatives are expected to help NTU facilitate a new downstream rare earths supply chain in WA, supporting regional development and ultimately helping the world transition to a decarbonised future.