Browns Range DFS Confirms 181,000 Tonnes TREO Production and A$592M Capital Cost
Northern Minerals has released its Definitive Feasibility Study for the Browns Range Heavy Rare Earth Project, confirming an 11-year production plan targeting 181,000 tonnes of rare earth concentrate. The project aims to establish a critical Australian supply chain for heavy rare earths in partnership with Iluka Resources.
- 11-year production plan targeting 181,000 tonnes of Total Rare Earth Oxides (TREO)
- Strategic partnership with Iluka Resources to supply HRE-rich concentrate to Eneabba refinery
- Pre-production capital expenditure estimated at A$592 million with operating costs of A$31.25/kg TREO
- Base case post-tax NPV of A$187 million and 10% post-tax IRR, with upside potential
- Project addresses global supply risks amid China’s export restrictions on heavy rare earths
A Strategic Milestone for Australian Rare Earths
Northern Minerals Limited has taken a significant step forward with the release of its Definitive Feasibility Study (DFS) for the Browns Range Heavy Rare Earth Project in Western Australia. The DFS confirms the project’s technical and financial viability, outlining an 11-year production plan targeting up to 181,000 tonnes of Total Rare Earth Oxides (TREO) concentrate, with an average annual output of approximately 4,350 tonnes. This positions Browns Range as one of the highest-grade heavy rare earth deposits outside China, particularly rich in dysprosium (Dy) and terbium (Tb), critical elements for permanent magnets used in electric vehicles, renewable energy, and defense technologies.
Robust Economics and Market Positioning
The DFS reveals a pre-production capital expenditure of A$592 million and operating costs averaging A$31.25 per kilogram of TREO. Financial metrics under the base case scenario include a post-tax net present value (NPV) of A$187 million and a post-tax internal rate of return (IRR) of 10%, with a payback period of seven years from first production. A divergence case, reflecting more favourable market prices, boosts the post-tax NPV to A$443 million and IRR to 18%, highlighting significant upside potential. The project’s product basket derives around 70% of its value from Dy and Tb, underscoring its strategic importance amid a tightening global supply landscape.
Strategic Partnership and Domestic Supply Chain Development
Central to the project’s strategy is a long-term supply agreement with Iluka Resources Limited, which plans to use Browns Range concentrate as feedstock for its Eneabba refinery. This partnership aims to establish a fully domestic Australian rare earth supply chain, reducing reliance on China, which currently dominates global heavy rare earth production and processing. The agreement includes provisions for Iluka to purchase up to 5,500 tonnes of contained TREO annually, with price mechanisms that balance fixed and market-linked components, ensuring Northern Minerals benefits from potential price upside.
Technical Confidence and Approvals in Place
The DFS benefits from a proven process flowsheet validated by extensive metallurgical test work, including pilot plant operations that have demonstrated the ability to upgrade ore to approximately 25% TREO concentrate with over 80% recovery. All key primary approvals, native title agreements, and project tenure have been secured, enabling rapid mobilisation toward a targeted first concentrate shipment by 2028. The project employs conventional mining methods, combining open pit and underground operations, which reduces complexity and risk.
Navigating Risks and Funding Pathways
While the DFS confirms strong fundamentals, Northern Minerals acknowledges risks including funding, pricing volatility, native title, and regulatory approvals. The company is actively engaging with government-backed funding agencies such as the Northern Australia Infrastructure Facility and Export Finance Australia, alongside commercial banks and strategic equity partners. The alignment with Australian and international critical minerals policies enhances prospects for non-traditional financing and government support, reflecting the project’s strategic significance in global supply chains.
Bottom Line?
As Northern Minerals advances toward a final investment decision, Browns Range stands poised to reshape the heavy rare earth landscape and Australia’s role in securing critical mineral supply chains.
Questions in the middle?
- Will Northern Minerals secure the necessary funding and finalize the investment decision to commence construction?
- How will global rare earth prices, especially for dysprosium and terbium, evolve amid geopolitical tensions and supply constraints?
- What potential exists for Browns Range to extend its mine life or expand production through further exploration?