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Major Project Status granted to VHM’s Goschen Zircon and Rare Earth Project

April 28, 2021

Major Project Status granted to VHM’s Goschen Zircon and Rare Earth Project

The government’s support for Australia’s burgeoning rare earth mineral sector continues, with unlisted miner VHM Limited granted Major Project Status for its Goschen Zircon and Rare Earth Project.

The government’s support for Australia’s burgeoning rare earth mineral sector continues, with unlisted miner VHM Limited granted Major Project Status for its Goschen Zircon and Rare Earth Project.

The designation comes after Prime Minister Scott Morrison announced $1.3 billion in grant funding would be made available to select critical mineral (including rare earth) mining and value-add projects.

VHM was named a Major Project in recognition of the Goschen and AREM Project’s strategic significance to the country, and means the company will receive ongoing support from the Major Projects Facilitation Agency.

This includes assistance coordinating and streamlining approvals across Federal and State Government jurisdictions.

Commenting on the news, Minister for Industry, Science and Technology – The Hon Christian Porter MP said the construction of the mine and refining facilities will bring 500 direct jobs to Victoria and South Australia.

Mr Porter expects the continued operation of both the mine and refinery will lead to 300 ongoing jobs for at least two decades.

“Along with the mining of zircon and titanium minerals for export, this project involves mining rare earths and processing them in a purpose-built refinery in Australia,” he said.

“[This is] just the sort of value-adding we want to see in this and other areas.”

The Goschen Project is located on VHM’s near-contiguous 6,300km Victorian tenement, and houses an indicated and inferred resource inventory of 1.1 billion tonnes of zircon, rutile, and rare earth elements.

The soft-rock composition of the Goschen Project’s resource means this material can be extracted and processed without undergoing crushing or grinding, reducing the cost of production.

The site also contains high grades of zircon (just under 30%), while the project’s combined Neodymium and Praseodymium grade is approximately 20% – directly comparable to Lynas rare earth mineral grades.

Rare earth elements are a group of 15 different metals which, though abundant in the earth’s crust, are rarely found in commercially-viable quantities.

They are used in motors for electric vehicles, turbines for wind turbines and defence systems’ various computer components, and are considered strategically important to the country.

China currently controls a majority of global supply of these critical minerals, prompting major economic hubs including the US, Japan and Australia to look for new sources to diversify their supply chains.

This push for new rare earth production is expected to provide a tailwind to Australian producers, like VHM.

 

Reach Markets recently assisted VHM Limited with a capital raise for sophisticated wholesale investors. We specialise in assisting wholesale and professional investors to identify investment opportunities. Click here to receive further information on open deals.

 

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