Wimmera rare earth mine receives $180m backing

A US uranium producer has poured millions into a proposed rare earths mine which will cover 2500ha of arable farmland.

A North American uranium producer has backed an ASX-listed company’s bid to build one of the world’s largest rare earth mines in Victoria’s Wimmera region, set to span more than 2000ha of arable farmland.

Energy Fuels, headquartered in the US state of Colorado, has invested $183 million to fund Astron Corporation’s development of the Donald Rare Earths and Mineral Sands Project, which could become the first rare earths project to be permitted in the eastern states of Australia.

Rare earth elements, including neodymium and praseodymium, are used to build magnets for wind turbines and electric vehicles. Astron plans a 7.5 million tonne a year mining operation at Donald, producing 200,000 to 250,000 tonnes per year of heavy mineral concentrate and about 7000 to 8000 tonnes a year of rare earth element concentrate.

Last year Astron lodged its Victorian Work Plan with the state government and is now waiting for its final approval, estimating production at the Donald project could begin by 2026.

Located between Minyip and Donald in Victoria’s west, the project’s mining licence spans 2500 hectares in the region, with a further 40,000 hectares of mainly agricultural land under exploration.

Last year Astron owned four blocks of arable, mixed farmland for a total of 829ha within their mining licence with two further properties totalling about 790ha to be purchased (or agreed land use terms) for operations to begin.

The Donald Rare Earths and Mineral Sands Project spans more than 2000ha of arable farmland in the Wimmera region. Picture: Zoe Phillips

Astron managing director Tiger Brown said the joint venture with Energy Fuels, was a “transformational moment” for the project.

“We look forward to a long and productive relationship with our new partner to collectively bring to life what, in Donald, is one of the world’s most significant critical mineral resources,” he said.

The deal will give Energy Fuels up to a 49 per cent stake in the Donald Rare Earths and Mineral Sands Project, with the company to issue US$17.5 million in NYSE-listed Energy Fuels Inc shares to Astron.

As part of the deal it is expected rare earths concentrate from the Donald site will be shipped to Energy Fuels’ White Mesa Mill processing facility in Utah by 2026.

Astron’s Donald project is one of several proposed rare earth mines before the state government in various planning stages including VHM Limited’s Goschen Mineral Sands and Rare Earths project, which has an approximate area of 1534ha, about 35km south of Swan Hill.

WIM Resource Pty Ltd are also wanting to build the Avonbank Mineral Sands project across 3546ha, 15km northeast of Horsham, as well as, Iluka Resources Limited’s Wimmera Mineral Sands project across 2600ha, about 35km southwest of Horsham.