VHM Limited has clinched the last major regulatory hurdle for its Goschen Project with Planning Scheme Amendment approval, setting the stage for project financing and execution.
- Planning Scheme Amendment approved for off-site infrastructure
- Completes major regulatory approvals including Mining Licence and EPBC Act
- Strategic partnership and funding deal with Iluka Resources secured
- Letters of support from Export Finance Australia and US EXIM Bank
- Focus shifts to project funding closure and execution planning
Final Regulatory Approval Unlocks Goschen Project Progress
VHM Limited (ASX:VHM) has secured the Planning Scheme Amendment (PSA) approval from the Victorian Minister for Planning, marking the last major regulatory green light for its Goschen Project in Victoria. This PSA unlocks critical off-site infrastructure development such as road intersection upgrades and a raw water pipeline, which lie outside the Mining Licence boundary but are essential for project operation.
The approval completes a lengthy approvals journey that included a positive Environmental Effects Statement (EES) assessment in 2024, Mining Licence MIN007256 granted in April 2025, Commonwealth clearance under the Environment Protection and Biodiversity Conservation Act, and Cultural Heritage Management Plan and Work Plan approvals in 2025. Together, these consents form a comprehensive regulatory framework supporting the project’s development.
Strategic Funding and Offtake Partnerships Strengthen Project Viability
With the approvals box ticked, VHM’s focus now pivots to closing project funding and execution planning. The company recently announced a significant offtake and funding agreement with Iluka Resources Ltd (ASX:ILU), which includes a binding 20-year rare earths offtake and a A$40 million convertible note funding package. This partnership not only secures a stable market for Goschen’s rare earth concentrate but also injects critical capital to advance the project towards Final Investment Decision (FID).
Additionally, VHM has received a non-binding Letter of Support from Export Finance Australia for up to A$75 million and a Letter of Interest from the US Export-Import Bank (EXIM) for up to US$200 million (~A$304 million), underscoring international confidence in the project’s prospects.
Project Attributes and Location Offer Strategic Advantages
The Goschen Project is a dual commodity operation producing both rare earths and heavy mineral concentrates such as zircon and titanium oxide. Its rare earth assemblage includes both light elements like Neodymium and Praseodymium and heavy elements such as Dysprosium and Terbium, which are critical for high-tech and clean energy applications.
Mining operations will be conventional, employing shallow-pit truck-shovel methods with a straightforward processing flow sheet. The project is wholly owned by VHM and strategically situated in Victoria’s infrastructure-rich Loddon Mallee region, offering direct access to road, rail, and port facilities, an advantage for logistics and export.
De-risking Milestone Shifts Focus to Funding and Execution
CEO Andrew King described the PSA approval as the "final major piece" of the Goschen Project’s approvals framework, enabling a shift from regulatory activities to financing and execution. This milestone reduces project risk significantly and aligns with the company’s recent funding and offtake deals with Iluka, positioning Goschen for a potential FID in the near term.
While the announcement does not specify timelines for funding closure or the FID, the consolidated approvals and strategic partnerships suggest VHM is well placed to advance towards production, targeted for late 2027.
Bottom Line?
With all major approvals in hand and strategic funding lined up, VHM’s Goschen Project moves decisively towards final investment and construction phases.
Questions in the middle?
- When will VHM announce the Final Investment Decision for Goschen?
- What are the detailed terms and conditions of the Iluka funding and offtake agreements?
- How will VHM navigate execution risks given the scale and dual commodity nature of the project?