Australian Strategic Materials Ltd (ASX:ASM) has granted a consultancy agreement to Bechtel Australia Pty Ltd for engineering services related to the non-process infrastructure (NPI) study for its Dubbo Project in New South Wales.
This study will enhance the NPI design's engineering maturity in vital areas beyond the process plant, including:
- residue storage and handling facilities;
- site water management;
- utility design and supply; and
- site establishment planning.
The Dubbo Project is the cornerstone of ASM’s vertically integrated business, providing a long-term resource of rare earths and critical minerals.
Looking ahead, this work is instrumental in shaping the capital and operating cost estimates, which are crucial for ASM's final investment decision on the Dubbo Project.
On track for FID
ASM managing director and CEO Rowena Smith said: “We are pleased to confirm this agreement with Bechtel – a trusted partner with extensive experience in this area of work.
“With federal funding confirmed in May, we have progressed in line with our project plan to put the contract in place, commence this important aspect of our early establishment activities and keep us on track for FID by the end of 2024.”
Dubbo project milestones and targets.
Key role in energy transition
Bechtel’s services will be provided on a rates-basis paid for work completed and is estimated to be $6.5 million.
The services will be funded by the recent Critical Minerals Development Program grant awarded to ASM from the Australian Government.
The company will kick off the work immediately with the term of contract running until the end of next year.
Bechtel president for Mining & Metals Ailie MacAdam said: “We are excited to support ASM to advance the Dubbo Project.
“These critical minerals are essential components in today’s rapidly growing clean energy technologies and this project will play a key role in the energy transition.”