In a bid to rev up the country’s critical minerals industry, the Australian Government has earmarked almost $50 million in grants under its Critical Minerals Development Program (CMDP).
Federal Resources Minister Madeleine King unveiled the program today, designed to front up to 50% of the expenditure costs linked to Australia’s most prospective critical mineral assets.
Thirteen select projects will receive funding over the next 3 years to support activities including feasibility studies, engineering design work and building pilot or demonstration facilities.
What will the funding support?
The CMDP has earmarked funds for projects that support the nation’s critical minerals strategy, which entails:
- grow Australia’s critical minerals industry;
- increase the diversity and sustainability of supply chains;
- help Australia transition to net zero emissions; and
- create jobs and economic opportunities 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.
Successful projects
Northern Minerals
Northern Minerals Ltd (ASX:NTU) has bagged A$5.9 million in CMDP grant to fast-track its Wolverine heavy rare earths play within the Browns Range Project.
Situated in Western Australia’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.
Northern Minerals is currently working through a definitive feasibility study, which evaluates a commercial-scale mining operation and beneficiation plant at Browns Range.
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 Western Australia.
Australian Strategic Materials
Australian Strategic Materials Ltd (ASX:ASM) has received A$6.5 million in CMDP funding for its rare earths and critical minerals Dubbo Project in New South Wales.
ASM will receive the funding, subject to the execution of binding documentation, to progress the Dubbo Project’s EPC Definition activities with respect to non-process infrastructure.
ASM managing director and CEO Rowena Smith said: "As part of our commitment to strong ESG performance, this funding will allow us to optimise the final design of the project’s carbon, water and residue management.
“This is another exciting step for our Dubbo Project, as we build our global mine to metals business and look to bring new jobs and opportunities to the people of Dubbo and the region.”
The total cost of the non-process infrastructure EPC Definition activities is estimated at $15.35 million. ASM will co-contribute $8.85 million to the cost of the activities, which are planned to start in June 2023.
Queensland Pacific Metals
Queensland Pacific Metals Ltd (ASX:QPM) has secured $5 million in CMDP funding to engineer and design the first phase of a full-scale refinery at its Townsville Energy Chemicals Hub (TECH Project).
The TECH Project will be a modern and sustainable battery materials refinery, processing imported, high-grade laterite ore from New Caledonia to produce nickel sulphate and cobalt sulphate, as well as other valuable co-products.
QPM has already secured offtake agreements for 100% of nickel and cobalt sales for the life of the project. In addition to being offtake partners General Motors, LG Energy Solutions, and POSCO are also investment partners with a significant shareholding in QPM.
The TECH project has a nameplate production of 16,000 tonnes nickel metal contained in nickel sulphate and 1750 tonnes cobalt metal contained in cobalt sulphate.
International Graphite
International Graphite Ltd (ASX:IG6) will receive a $4.7 million grant towards its mine-to-market battery graphite materials project in Western Australia.
The funds, which are expected to be available from 1 June 2023, will help fast-track the integrated mine-to-market graphite supply chain the company is developing in Western Australia.
Grant funding will be used to advance feasibility studies for the company’s proposed graphite mine at Springdale, and advanced battery anode material manufacturing plant at Collie, as well as construction of a planned graphite micronising facility, also at Collie.
The company will contribute to the balance of the funding requirements for those activities over time.
IG6 managing director and CEO Andrew Worland said: “Australia has set its sights on becoming a critical minerals powerhouse and we are thrilled that the Federal Government has recognised our potential to contribute to that vision.
“This grant is an important vote of confidence in our business and confirmation that projects like Springdale and Collie are vital in meeting global decarbonisation targets.”
IGO
IGO Limited (ASX:IGO) is advancing an integrated downstream nickel-cobalt refinery at Kwinana in Western Australia, which will produce high value nickel-cobalt-manganese precursor cathode active material.
The $4.6 million grant will enable IGO to complete piloting, metallurgical test work, a demonstration phase feasibility study, a by-product optimisation study and detailed engineering studies.
EcoGraf
EcoGraf Ltd (ASX:EGR, OTCQX:ECGFF) has been awarded $2,900,605 to advance its graphite qualification facility at Lucas Heights in New South Wales.
The company will use the facility to demonstrate its sustainable hydrofluoric acid-free graphite refining process.
Tungsten Mining
Tungsten Mining (ASX:TGN) has secured a grant of $1 million for test work at its Mount Mulgine Tungsten Project in Western Australia.
Key project activities include a study to investigate the potential downstream production of ammonium paratungstate, an important raw material for most tungsten products used in manufacturing, aerospace and defence.