VHM continues to achieve key milestones en route to first rare earths and mineral sands production in the coming years.

The June quarter saw VHM slash 30 per cent off the capital expenditure (capex) estimate for its Goschen project in Victoria, which is now set to cost $337 million to develop.

Goschen Phase 1 consists of a five-million-tonne-per-annum throughput project to produce a rare-earth mineral concentrate containing neodymium, praseodymium, dysprosium and terbium, and a zircon-titania heavy mineral concentrate.

The most significant price reductions were seen for non-process infrastructure (down from $191.7 million to $117.1 million) and pre-production mining and other ancillary costs (down from $106.8 million to $51.1 million). The cost of the processing plant also reduced from $184.6 million to $168.8 million.

Final stage of the Goschen Environment Effects Approval process

VHM also achieved an important approvals milestone in the June quarter, with the Inquiry and Advisory Committee (IAC) issuing its findings and recommendation report to the Victorian Minister for Planning, marking the end of the public exhibition, IAC hearing and reporting stages.

The Minister for Planning will now make an assessment of the environmental effects of the project after considering the IAC’s report, along with the Environmental Effects Statement (EES) and public submissions.

A positive ministerial assessment for the Goschen EES will trigger the Earth Resources Regulator assessment of VHM’s mining licence application and be the green light for VHM to apply for its relevant permits.

Regional Victorian Mining partner selected

VHM also recently entered into a memorandum of understanding (MoU) with Yellow Iron Fleet for mining services at Goschen, with the two parties expected to enter into a mining partnership agreement during the six-month MoU period.

A mining partnership agreement would extend for a period equal to the life of mine of the company’s Area 1 – set to be in excess of seven years.

Alongside the MoU, VHM is also engaging with engineering, procurement and construction management (EPCM) partners, with a shortlist of contractors set to be determined in the second half of 2024.

Captial raise with proceeds to continue Goschen development

VHM launched a capital raise subsequent to the quarter ending, receiving firm commitments for a $1.8 million placement of new shares at $0.42 per share. The capital raise introduced a number of new institutional shareholders to the register.

Additionally, VHM plans to launch a share purchase plan to raise an additional $3 million on the same terms.

Proceeds from the placement and share purchase plan will fund ongoing work programs and working capital as the company continues to progress its environmental approvals process ahead of a final investment decision on Goschen, which is expected in early 2025.

Above: VHM and Yellow Iron Fleet Management

Published by Australian Resources & Investment.