Northern Minerals Ltd (ASX:NTU) has boosted its finances to the tune of A$4.3 million after receiving a research and development rebate from the Australian Tax Office (ATO).
This amount relates to the heavy rare earths producer’s refundable R&D tax offset claim for the financial year ended June 30, 2021.
R&D initiative
Under the initiative, jointly administered by the Australian Government’s AusIndustry and ATO divisions, eligible companies can receive cash refunds of up to 43.5% of all eligible expenditure on designated research and development projects.
Focus on Browns Range
Northern Minerals is poised to become one of the few producers of the heavy rare earth element dysprosium, produced from the Browns Range Heavy Rare Earth Project in Western Australia.
The project is 100%-owned by NTU and has several deposits and prospects containing high-value dysprosium and other HREs, hosted in xenotime mineralisation.
The company aims to develop the project to become a significant dysprosium producer outside of China.
Dysprosium is an essential ingredient in the production of DyNdFeB (dysprosium neodymium iron boron) magnets used in clean energy, military and high technology solutions.
Production of heavy rare earth carbonate began in late 2018 as part of pilot assessment of economic and technical feasibility of a larger scale development at Browns Range.
An ore sorter was installed and commissioned during 2021 which will also be tested for its economic and technical feasibility at the front end of the pilot plant.
READ: Northern Minerals new chair a regional and rare earths industry expert
The company last month appointed Nick Curtis AM as chairman of the Board of Directors.
Curtis has a background in mining and finance spanning more than 30 years and brings expertise in regional relations that will bolster the company's ambitions to become a dysprosium producer to rival China.
His regional knowledge started with Sino Gold Limited, which he founded as executive chairman, operating gold mines in China. It listed in 2001 and was bought by Eldorado Gold Corp (TSX:ELD) (Eldorado Gold Corp (TSX:ELD)) of Canada in 2006 after becoming an ASX top 100 company.
Rare earths veteran
Curtis is a veteran of the rare earths industry, having taken control of ASX-listed Lynas Corporation (ASX:LYC) (Lynas Corporation (ASX:LYC)), now Lynas Rare Earths Ltd, and retraining its focus on rare earth to develop the Mt Weld rare earth deposit in Western Australia and a large downstream rare earth processing plant in Kuantan in Malaysia.
Curtis went on to found Forge Resources Ltd in 2011, a junior ASX mining exploration company that acquired the Balla Balla Mine in the Pilbara in Western Australia. This company, privatised in 2014 and now BBI Group Pty Ltd, is focused on building a large-scale integrated iron ore system in the Pilbara in Western Australia.