Astron (ASX:ATR) said on Monday (October 20) that the Australian Government has granted Major Project Status to the Donald rare earth and mineral sands project, its joint venture with Energy Fuels (NYSE:UUUU,TSX:EFR).
Donald is located approximately 300 kilometres northwest of Melbourne in Minyip, Victoria, Australia and is regarded as “one of the world’s most significant rare earths resources outside China.” It currently holds a total mineral resource of 1.81 billion tonnes at a 4.6 percent grade.
“This (designation) will streamline our engagement with federal agencies and accelerate our pathway to development,” commented Astron Managing Director Tiger Brown.
“The Donald project will create significant employment opportunities and deliver long-term economic benefits to the Wimmera region of Victoria as well as strengthen Australia’s sovereign capability in critical minerals and advanced technology supply chains.”
A mine life of over 58 years is planned for the project, with an expected annual production of 9,000 tonnes of rare earths during Phase 1.
In a separate announcement, Energy Fuels said that Export Finance Australia (EFA) expressed its support for the project.
AU$80 million through senior debt financing will be provided by EFA. The total amount needed to develop the Donald project is AU$520 million.
Energy Fuels CEO Mark Chalmers said that the support is a “key additional step” in the project’s financing pathway and a “strong vote of confidence” in the project’s capacity and potential.
“(It) reflects our on-going progress toward delivering one of Australia’s most important rare earth projects, including valuable NdPr, and exceptional concentrations of Dy, Tb and other ‘heavy’ rare earth oxides, which upon project development will be processed and separated into high-purity products at our White Mesa Mill in Utah,” he added.
According to a work plan for Donald published in June, the progression towards a final investment decision for the project is expected within 2025. Commencement of production at Donald is scheduled for 2027.
Rare earths have been heavily spotlighted this month after China dramatically expanded its control over rare earth exports, a sector crucial to global tech and defense industries.
The October 10 announcement from the Ministry of Commerce adds five new elements—holmium, erbium, thulium, europium, and ytterbium—along with key refining technologies to its export control list.
The new rules carry a global reach: any foreign company producing rare earth materials or magnets using Chinese-origin equipment or technology must now obtain an export license from Beijing. Crucially, applications for defense-related or advanced semiconductor projects, including cutting-edge AI with military potential, will face intense scrutiny and are likely to be denied.
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.