Australia approves AUD 49 million for key mineral appropriations

On May 18th, the Australian government approved approximately 49 million Australian dollars (32.5 million US dollars) in grants to 13 key Australian mineral projects nationwide to accelerate the development of these projects, which will help diversify the supply chain.

A total of approximately $29 million in grants will be awarded to seven projects in Western Australia, of which $11.4 million will be awarded to three projects in New South Wales and $8.4 million to three projects in Queensland.

The 13 projects funded under the Key Mineral Development Program grant include plans to produce key inputs for lithium-ion batteries in electric vehicles, as well as plans to support the supply chain of advanced manufacturing industries in aerospace, healthcare, energy, and defense applications, "said Australian Federal Minister of Resources Madeline King

Australian Strategic Materials (ASM), listed on the Australian Stock Exchange, will receive A $6.5 million for its Dubbo project in New South Wales, which may produce key oxides of zirconium, niobium, hafnium and rare earths. ASM also plans to provide raw materials for its operating South Korean metal plant after the Dubo Mining project begins operation, and to purchase long-term rare earth oxide supplies from Vietnam Rare Earth Company in December.

Magnesium Australia will receive AUD 6.25 million to help commercialize its patented technology for clean extraction of magnesium metals, as well as its magnesium refining pilot plant located in Corey, Western Australia. According to an announcement in April, the pilot factory will have a potential production capacity of 800 tons/year of high-purity magnesium metal and has received a grant of AUD 5 million from the Western Australian government's Koli Industrial Transformation Fund.

Northern Minerals, which is listed on the Australian Stock Exchange, will also receive A $5.9 million to develop its Brown Range project in Horses Creek, Washington State, to produce heavy rare earths such as dysprosium and terbium. According to Northern Mining Company, the final feasibility study may be completed from October to December, and the final investment decision will be made from January to March 2024. The company signed a supply contract for 30500 tons with Australian mineral producer Iluka Resources in October 2022.

Battery material manufacturer Australian Energy Storage Company will receive A $5.5 million for its precursor cathode active material (PCAM) manufacturing plant in Quinana, Western Australia. According to the business introduction released in August 2021, the plant is expected to have a capacity of 10000 tons/year. The company is negotiating to purchase key mineral supplies from Albertmar in the United States and BHP, an Australian resource company.

The international graphite company listed on the Australian Stock Exchange and graphite developer Ecograf will receive AUD 4.7 million and AUD 2.9 million respectively to support their graphite projects. International Graphite Corporation plans to use this funding to advance the feasibility study of its Springdale graphite mine, which will be integrated with the graphite battery anode material facility located in Corey, Washington. Ecograf is building a battery anode material factory in New South Wales, which is expected to be put into use early next year.

IGO, a large lithium company, will receive a grant of AUD 4.6 million for its project with Wyloo Metals to develop an integrated battery material facility in Kwinana, Western Australia. The proposed construction includes integrating downstream nickel refineries with PCAM manufacturing plants dominated by high-value nickel. A feasibility study is underway and land was obtained from the Western Australian government in April. This may be Australia's first commercial production of PCAM.

Federal Minister of Resources Jin Buchong said, "These grants will support Australia's upcoming new key mineral strategy, which will support Australia in seizing significant opportunities to develop its key mineral processing industry