Northern Minerals Advances Browns Range Amid Rare Earth Supply Chain Shifts

Strategic Progress Amid Geopolitical Tensions

Northern Minerals Limited (ASX: NTU) has delivered a robust March 2025 quarterly report, underscoring its commitment to advancing the Browns Range Heavy Rare Earths Project in Western Australia's East Kimberley region. The company’s focus on critical heavy rare earth elements, particularly dysprosium and terbium, aligns with global efforts to diversify supply chains amid escalating geopolitical tensions.

China’s recent export restrictions on seven medium and heavy rare earths, including dysprosium and terbium, have intensified supply chain vulnerabilities. In response, governments such as the United States and Australia are accelerating initiatives to secure independent sources of these critical minerals. Northern Minerals’ Browns Range project, with its high-grade Wolverine deposit, is emerging as a strategically significant alternative to Chinese dominance in heavy rare earth processing.

Feasibility Study and Project Development

The company remains on track to complete its updated Feasibility Study by the end of the 2025 financial year. This study integrates the recently updated Wolverine Mineral Resource Estimate and incorporates detailed mining workflows, capital and operating expenditure updates, and value engineering programs aimed at cost optimisation. Negotiations for major project contracts, including process plant construction, mining services, and power supply, are well advanced, setting the stage for a timely final investment decision.

Expenditure on feasibility activities during the quarter was approximately $1.2 million, complemented by $1.1 million in site costs. Northern Minerals has engaged specialist consultants to refine the process plant flowsheet and mining strategy, further enhancing project economics and operational efficiency.

Exploration and Resource Expansion

Exploration efforts continue to expand the understanding of Browns Range’s mineral potential. Diamond drilling programs at the Dazzler and Gambit deposits are underway, targeting structural controls and extensions of heavy rare earth mineralisation. While assay results from the Dazzler drilling are pending, the programs are designed to identify new hydrothermal feeder systems and improve geological models.

Additionally, satellite hyperspectral data acquisition has been commissioned to support regional target generation across the Browns Range Dome in both Western Australia and the Northern Territory. The company is also following up on chargeable anomalies identified in the John Galt tenements through induced polarisation surveys, indicating potential for further discoveries.

Corporate and Financial Position

Northern Minerals successfully completed a two-tranche placement, raising approximately $41.5 million before costs through the issuance of over 2.18 billion shares. This capital injection strengthens the company’s balance sheet as it advances project development and exploration. The company also resolved all divestment obligations under the Foreign Investment Review Board orders, removing previous ownership restrictions.

Discussions continue with Iluka regarding amendments to the terms of a convertible note, though no final agreement has been reached. Engagement with government funding bodies, including the Northern Australia Infrastructure Facility and Export Finance Australia, is ongoing, with the feasibility study expected to support forthcoming project financing discussions.

Environmental, Social, and Governance (ESG) Commitment

Maintaining a Total Recordable Injury Frequency Rate (TRIFR) of zero, Northern Minerals continues to demonstrate a strong safety culture. Environmental approvals are progressing, including applications under the Environmental Protection and Biodiversity Conservation Act and mining proposals. The company is actively engaging with the Jaru Traditional Owners for cultural monitoring and archaeological surveys, reflecting its commitment to responsible development and community partnership.

Local engagement efforts extend to regional business communities, with Northern Minerals leveraging memberships in local chambers of commerce to promote work package opportunities, supporting regional economic participation aligned with its Australian Industry Participation Plan.