VHM Limited’s Currumbin MoU could deliver Goschen heavy mineral concentrate offtake

VHM Limited’s MoU with Currumbin Minerals sets timeline and framework for collaboration agreement governing sale of Goschen heavy minerals concentrate.

Special Report: VHM Limited has entered into a memorandum of understanding with Currumbin Minerals for the potential domestic offtake of heavy mineral concentrate from its Goschen project in Victoria.

• VHM signs MoU with Currumbin Minerals for potential offtake of heavy mineral concentrate from Goschen
• Currumbin operates a heavy mineral sands gravity, electrostatic and magnetic processing plant in Queensland
• Agreement is in line with company strategy to develop a domestic supply chain for products produced at Goschen

The agreement sets out a timeline and framework for the two parties to work towards a proposed collaboration agreement that will enable the sale of a high-grade zircon-titania HMC to Currumbin Minerals for processing.

Currumbin operates Australia’s latest-technology heavy mineral sands gravity, electrostatic and magnetic processing plant in Queensland.

This MoU fits neatly with VHM Limited’s (ASX:VHM) strategy of developing a domestic supply chain for products produced at Goschen.

It also follows the company receiving the key mining licence from Resources Victoria that allows the company to mine the land, explore for minerals and construct facilities related to the Goschen mining operation.

“The collaboration with Currumbin Minerals is a significant step in VHM’s strategy to build a domestic supply chain for both its rare earths and mineral sands products to further align itself with the Victorian Governments Critical Minerals Roadmap, whilst supporting further processing opportunities with companies like Currumbin Minerals in Queensland,” VHM CEO Ron Douglas said.

Goschen project

Goschen has an ore reserve of 210 million tonnes within a massive resource of 892Mt at 3% total heavy minerals and is also rich in rare earths.

This is more than enough to fuel an initial 1.5Mtpa operation using a modular plant that has estimated pre-production capital costs of $160m.

Stage 1 will produce some 4300 tonnes per annum of rare earth mineral concentrate and 69,000tpa of zircon/titania heavy mineral concentrate at operating costs of $77 million per year.

It is expected to fund the stage two expansion to 5Mtpa, which will cost an additional $85-90m and take production up to 9000tpa of rare earths and 134,000tpa of HMC for at least 19 years.

Taken together, Goschen is estimated to provide a pre-tax net present value of $1.456 billion billion, an internal rate of return of 54% and a payback of 3.5 years, based on pricing assumptions from TZMI and Adamas Intelligence.

A final investment decision is expected this year, which will enable first production in late 2026. This will likely be supported by a successful offtake agreement stemming from the MoU with Currumbin.

Listen: Ron Douglas chats with Barry FitzGerald

In a previous instalment of the Explorers Podcast, host Barry FitzGerald spoke with VHM (ASX:VHM) CEO Ron Douglas about the significance of the company’s Goschen rare earths and mineral sands project in Victoria.

This article was developed in collaboration with VHM a Stockhead advertiser at the time of publishing. 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.