How ACDC Metals’ Goschen Central Could Transform Australia’s Rare Earths Supply

Strong Economics at Goschen Central

ACDC Metals has announced the results of its Goschen Central Scoping Study, a milestone that underscores the project's potential to become a significant domestic source of critical minerals in Victoria. The study outlines a two-phase development strategy – Phase 1 focuses on traditional heavy mineral sand mining and processing to produce zircon-titania concentrate and a rare earth mineral concentrate, while Phase 2 involves a downstream rare earth processing plant producing mixed rare earth oxide (MREO) with enhanced economic returns and a reduced environmental footprint.

The project boasts a 14-year mine life with a processing plant designed for 6 million tonnes per annum. Financially, the study presents a pre-tax net present value (NPV8) of A$384 million and an internal rate of return (IRR) of 24% under base case pricing assumptions, with an annual EBITDA of approximately A$101 million. Capital expenditure is estimated at A$310 million for Phase 1 and an additional A$119 million for Phase 2, which is expected to be funded from Phase 1 cash flows.

Strategic Rare Earth Elements and Market Position

The Goschen Central project is strategically positioned to supply critical rare earth elements such as neodymium, praseodymium, terbium, and dysprosium, which are essential for permanent magnets used in clean energy technologies. The project’s dual product streams; heavy mineral concentrate and rare earth mineral concentrate; help mitigate market volatility risks. Notably, Phase 1’s heavy mineral concentrate revenue covers over 90% of annual operating costs, providing a solid financial foundation.

ACDC Metals’ proprietary caustic crack process for rare earth extraction in Phase 2 offers a lower energy intensity and waste footprint compared to conventional sulphation roast methods, aligning with growing environmental and regulatory expectations. The project also benefits from strong government support, being identified as a key initiative in the Victorian Critical Minerals Roadmap, which aims to secure domestic supply chains for strategic minerals.

Resource and Operational Insights

The mineral resource underpinning the study totals 620 million tonnes at 2.2% total heavy mineral content, with 210 million tonnes classified as Indicated and 410 million tonnes as Inferred. The resource includes significant quantities of zircon, titania minerals, monazite, and xenotime. The mining plan currently utilizes less than 15% of the total resource, indicating potential for mine life extension through further exploration and resource conversion.

Mining operations will employ conventional truck and excavator methods with progressive rehabilitation planned to restore land to pre-mining agricultural use. Metallurgical testwork confirms the amenability of the ore to standard mineral sand separation techniques, producing high-grade concentrates suitable for international and domestic markets.

Funding and Next Steps

While the scoping study demonstrates robust project economics, ACDC Metals acknowledges the preliminary nature of the study with an accuracy of +/-40%. Securing approximately A$429 million in capital will be critical, with funding options including debt finance, strategic partnerships, equity financing, or joint ventures. The company has received positive indications from government bodies and potential financiers, including export credit agencies and development banks.

Looking ahead, ACDC Metals plans to advance the project through further resource definition drilling, feasibility studies, and engagement with potential offtake partners. The company aims to de-risk the project and explore commercial initiatives to realise shareholder value while contributing to Australia’s critical minerals supply chain resilience.