ASM Secures $400M Funding Interest, Advances Dubbo Project and Korean Metals Plant

Geopolitical Shifts Drive Strategic Expansion

Australian Strategic Materials (ASM) has reported a quarter of meaningful progress as it advances its vertically integrated mine to metals strategy amid a rapidly evolving global rare earths landscape. The company is responding to heightened geopolitical tensions, particularly between the US and China, which have intensified trade restrictions and exposed vulnerabilities in critical minerals supply chains.

ASM’s Managing Director and CEO, Rowena Smith, highlighted the urgency of diversifying supply away from China, which currently dominates over 90% of processed rare earth products. The recent US executive order aimed at boosting domestic mineral production aligns closely with ASM’s plans to establish a second metals plant in the United States, reinforcing its role as a secure alternative supplier.

Dubbo Project Advances with Phased Construction

The company is progressing a Rare Earth Options Assessment (REOA) at its flagship Dubbo Project in New South Wales. ASM is exploring a phased development approach, initially focusing on recovering rare earth elements, including those now subject to China’s export restrictions, before expanding to other commodities. This strategy aims to reduce upfront capital expenditure, accelerate production timelines, and simplify offtake agreements; key factors in securing funding.

Metallurgical testwork on atmospheric tank and heap leaching methods is underway, with encouraging results supporting the feasibility of this staged execution. ASM has also deferred certain infrastructure upgrades, such as the Obley Road improvements, to prioritise strategic funding activities.

Korean Metals Plant Pilots Heavy Rare Earth Production

ASM’s Korean Metals Plant (KMP) remains central to its mine to metals business, producing high-tech metals and alloys critical for clean energy, defence, and aerospace industries. The plant is piloting commercial-scale production of heavy rare earth metals dysprosium and terbium, which are increasingly restricted by Chinese export controls.

During the quarter, ASM delivered NdPr metal to customers including Magnequench and a European industrial materials company, while also advancing technical validation with potential new clients. The company noted increased enquiries for NdFeB alloys, reflecting growing demand in the EU, US, and Korea.

Funding and Market Positioning

ASM strengthened its financial position with Export Development Canada extending a $400 million Letter of Interest to support the Dubbo Project’s debt financing. The company is also engaging with US export credit agencies and exploring funding opportunities across Asia, Europe, and the Middle East.

Despite a cash outflow during the quarter, ASM ended with $27.8 million in cash and is negotiating refinancing of Korean loan facilities. The company’s strategic positioning as a reliable, de-risked supplier independent of China is increasingly relevant as global markets face supply constraints and tariff volatility.

Corporate and ESG Progress

ASM reported zero lost time injuries for the quarter, reflecting a strong safety culture. The company is advancing its environmental, social, and governance (ESG) commitments, including adopting the Towards Sustainable Mining framework and maintaining a medium-risk ESG rating from Morningstar Sustainalytics. Community engagement continues through educational partnerships and regional initiatives.

Board changes were also announced, with the appointment of Dominic Heaton as an independent non-executive director, bringing extensive mining and mineral processing experience.