Dubbo rare earths processing project falls on good ground with $5 million grant
The Government is backing Australia’s critical minerals industry with $5 million to support Australian Strategic Materials (ASM) in refining rare earths at its Dubbo project, boosting local jobs and Australia’s role in the global supply chain.
The federal government is investing $5 million through the International Partnerships in Critical Minerals Program to support Australian Strategic Materials (ASM)’s efforts in refining rare earths at its Dubbo mine and processing plant in New South Wales. The funding will cover up to 50% of a study aimed at finding more efficient ways to process these minerals.
This comes on top of a $6.5 million grant provided to ASM last year through the Critical Minerals Development Program, further strengthening Australia's critical minerals sector. ASM’s Dubbo Project focuses on mining, separation, and refining of essential elements such as zirconium, niobium, hafnium, and several rare earth elements, which are increasingly vital for both economic and defence purposes.
The Dubbo project is projected to create up to 1,000 jobs during construction and around 270 permanent roles once operational, contributing to regional development and job creation. ASM has also attracted international interest, receiving a Letter of Interest from the Export-Import Bank of the United States for up to US$600 million in potential project financing. Additionally, Export Finance Australia has provided support for $200 million in debt funding.
Minister for Resources and Northern Australia, Madeleine King, said, “Government support to refine rare earths is important for our sovereign capabilities and will help our trading partners meet their economic, national security and emission reduction commitments.” She also noted the role of the Dubbo project in bolstering Australia’s critical minerals sector, including rare earths, and added that it would benefit from new Production Tax Incentives for minerals processing.
The International Partnerships in Critical Minerals Program provides grants ranging from $2 million to $20 million for projects at the early to mid-stage of development. The aim is to help build supply chains with Australia’s international partners in the critical minerals sector. Eligible activities include feasibility studies, pilot plants, and capacity expansions, with the requirement that projects take place in Australia.
Applications for the International Partnerships in Critical Minerals Program grant opened in March 2024 and will remain open for up to two years. The program supports Australia’s Critical Minerals Strategy, which aims to foster collaboration and partnerships in the minerals sector while ensuring the highest environmental and social governance standards are met.
