Name of the Project
Dubbo zirconium/niobium/hafnium and rare earths project.

Location
The project is located 25 km south of Dubbo, in central-western New South Wales, Australia.

Project Owner/s
Australian Strategic Materials (ASM).

Project Description
The Dubbo project is a large, inground polymetallic resource of zirconium, hafnium, niobium, tantalum, yttrium and rare-earth elements. It has an 18.9-million-tonne mineral ore reserve and a 75.18-million-tonne mineral ore resource.

According to ASM, the project will, at full capacity, be capable of processing one-million tonnes a year of crushed ore through sulphuric acid leach and solvent extraction recovery.

Mining will be undertaken through an openpit, then transported to the processing facility.

Sulphuric acid used for leaching will be produced on site using a sulphur-burning acid plant that also generates electricity and steam for the process plant.

A small amount of waste rock will be extracted and transported to a small waste rock emplacement to the south-west of the openpit. The liquid and solid residues from the processing plant will be transported and stored in liquid residue storage facilities, solid residue storage facilities and salt encapsulation cells.

The project currently has a mine life of 20 years.

Potential Job Creation
About 450 jobs are expected to be created during construction and 200 during operations.

Net Present Value/Internal Rate of Return
In the base case, the project has an estimated pretax net present value (NPV), at an 8% discount rate, of A$1.24-billion and an estimated internal rate of return (IRR) of 17.5%.

In the staged build, the project has an NPV, at an 8% discount rate, of A$909-million and an IRR of 16.1%.

Capital Expenditure
The project will cost about A$1.3-billion in the base case scenario. In the staged build, Stage 1 is estimated at A$808-million and Stage 2 A$692-million.

Planned Start/End Date
Not stated.

Latest Developments
ASM has been awarded a A$5-million grant from the Australian federal government’s International Partnerships in Critical Minerals (IPCM) programme.

The funding, which will be matched by ASM, will advance production plans.

The IPCM grant will be used to support ASM’s rare earth options assessment and pilot programme that will explore lower capital and faster pathways to rare earths production. This programme will be conducted ahead of starting front-end engineering design (FEED) work. 

ASM will work with international partners DRA Global and Stantec, as well as local service providers Mining One and Core Metallurgy, to deliver the programme.

These activities are critical to ASM’s progressing key funding activities and making a final investment decision (FID) in the first half of 2026.

The funding support is in addition to ASM’s recent capital raise activities and its current discussions with the Export-Import Bank of the United States regarding ASM’s application for funding under the engineering multiplier programme. Together, this funding will enable the company to advance critical activities to reach an FID on the Dubbo project and transition into the construction phase.

Key Contracts, Suppliers and Consultants
HEC (EPCD); and DRA Global and Stantec, as well as local service providers Mining One and Core Metallurgy (rare earth options assessment and pilot programme).

Contact Details for Project Information
Alkane Resources, tel +61 8 9227 5677 or email mail@alkane.com.au