• VHM’s Goschen environmental effects statement endorsed by Victorian minister for planning
• Endorsement paves the way for approval of the ESS, which in turn clears way for approval of its mining licence
• Advanced rare earths and minerals sands project already has significant ore reserves and DFS in place

Special Report: VHM is now positioned to accelerate development of its flagship Goschen rare earths and minerals sands project after its environmental effects statement (EES) was endorsed by Sonya Kilkenny, the Victorian minister for planning.

This recommendation places VHM Limited (ASX:VHM) in a favourable position to accelerate investment decisions and develop strategic partnerships as it progresses the advanced project towards a final investment decision and first production in 2026.

Goschen sits in Victoria’s Loddon Mallee region ~275km north of Melbourne and benefits from existing infrastructure, a skilled workforce and strong local, state and federal government support.

It currently has an overall resource of 892.1Mt grading 2.7% total heavy minerals that includes an ore reserve of 210Mt at 3.8% THM.

This includes a significant quantity of rare earths-bearing monazite and xenotime mineralisation that hosts contained total rare earth oxides (TREO) of 413,107t.

A pilot-scale hydromet plant has already been successful in producing a high-purity mixed rare earth carbonate with 97% recovery of critical magnet rare earths neodymium and praseodymium along with 92% recovery of dysprosium and 94% of terbium.

Low-cost, proven development pathway

Development will be achieved through conventional low-cost processing using a simple, low-risk, proven flowsheet to produce multiple commodity streams.

A definitive feasibility study based on an ore reserve of 98.8Mt at 4% THM has already outlined attractive economics for a project with a mine life of between 20-25 years.

Pre-tax net present value and internal rate of return – both measures of profitability – have been estimated at $1.53bn and 44% respectively while payback on the capex of $337m is expected to be just 2.8 years.

Funding is expected to be a mix of debt from banks, export credit and other agencies, offtake financing and government funding, along with equity through strategic partnerships and public equity.

“VHM’s achievement in obtaining ministerial endorsement of Goschen’s EES is a major step forward in the initiation of a new rare earth and minerals sands project in Victoria,” chief executive officer Ron Douglas said.

“This recommendation is the result of extensive technical, environmental, and social studies conducted over several years and follows a rigorous evaluation process. It is a momentous outcome for all parties involved.”

Next steps

Looking further ahead, VHM expects to secure approval for the EES, mining licence and work plan.

It will also develop a detailed mining plan, select and award the preferred engineering contractor for the process plant and contractors to deliver non-process infrastructure work packages, and approach export credit agencies and commercial banks for project debt, plus develop corporate approach for an equity raise.

This article was developed in collaboration with VHM Limited, 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.