Astron’s Donald Project Eyes $118m Annual EBITDA Over 42 Years
Astron Limited has achieved major milestones for its Donald Rare Earth and Mineral Sands Project, including government recognition and conditional financing, setting the stage for a Final Investment Decision by year-end.
- Donald Project awarded Major Project Status by Australian Government
- Conditional $80 million support secured from Export Finance Australia
- Updated economic review forecasts $118 million annual EBITDA over 42 years
- Early works underway with water pipeline construction and equipment procurement
- Final Investment Decision targeted for end of 2025, pending financing and approvals
Government Endorsement and Financing Boost
Astron Limited (ASX – ATR) has marked significant progress in the development of its Donald Rare Earth and Mineral Sands Project in Victoria, Australia. Post quarter-end, the project was awarded Major Project Status by the Australian Federal Government, a designation that underscores its strategic importance to the nation’s critical minerals supply chain. Complementing this recognition, Astron secured a conditional Letter of Support from Export Finance Australia for up to $80 million in senior debt financing, a crucial step toward finalising the project’s funding package.
Robust Economics Underpin Long-Term Viability
The company released an updated economic review for Phase 1 of the Donald Project, which covers 17% of its total estimated mineral resources. The analysis projects an average annual EBITDA of $118 million, a pre-tax net present value (NPV8) of $837 million, and an internal rate of return (IRR) of 22.1% over a 42-year mine life. These figures highlight the project’s potential to generate substantial free cash flow and position Astron as a key supplier of critical rare earth elements such as neodymium, praseodymium, dysprosium, and terbium, alongside zircon and titanium minerals.
Advancing Construction and Operational Readiness
Early development activities are well underway, with construction of a raw water pipeline on schedule for completion by the end of 2025. The company has also executed earthworks contracts and commenced procurement of long-lead mechanical equipment, signaling tangible progress toward operational readiness. Mining contractor negotiations and logistics planning continue, with a focus on optimising value through initiatives such as in-pit plant location and enhanced mining strategies.
Strategic Partnerships and Off-Take Agreements
The Donald Project operates under a joint venture with US critical minerals company Energy Fuels Inc, which holds the right to earn up to 49% equity by funding the majority of Phase 1. Energy Fuels will also process the rare earth element concentrate at its White Mesa Mill in Utah. Astron has exercised its right to purchase 100% of the heavy mineral concentrate production and is progressing binding off-take agreements, including a non-binding agreement with China’s SuiXi JinDi Mining Ltd for product sales.
Corporate Developments and Broader Operations
In a strategic move, Astron completed its redomicile from Hong Kong to Australia, with the new entity commencing ASX trading in early September 2025. Meanwhile, its mineral separation plant in Yingkou, China, faces underutilisation challenges due to feedstock scarcity and a softening mineral sands market. The company is also pursuing legal recognition in the UK High Court of a $35 million ICSID award related to its former operations in The Gambia, a process expected to conclude by year-end.
Bottom Line?
With major approvals and financing milestones achieved, Astron is poised for a decisive Final Investment Decision that could reshape Australia’s rare earths landscape.
Questions in the middle?
- Will Astron secure the remaining debt financing to meet its $520 million funding target?
- How will delays in the Mineral Export Permission Licence impact project timelines?
- What are the prospects for binding off-take agreements and their pricing terms?
