Resources Top 5: America’s biggest uranium producer wants to tip $180m into an Aussie rare earths project

December 28, 2023

Mineral sands miner Astron has inked a non-binding Memorandum of Understanding with US$1.4bn capped Energy Fuels (NYSE:UUUU) to jointly develop the 2.6 billion tonne Donald rare earths and mineral sands project in Victoria.

Donald could be a globally significant, long-life supplier of critical rare earth elements (REE), including neodymium, praseodymium, dysprosium, and terbium as well as zirconium and titanium minerals, ATR says.

Energy Fuels — the US’ largest uranium producer and an emerging REE play — could invest A$180 million to earn 49% of the JV, plus issue ATR US$17.5m worth of shares.

Astron is a favourite of Collins Street Value Fund (CSVF) executive director Michael Goldberg, who believes the Donald project is the largest undeveloped zircon project in the Southern Hemisphere, big enough to provide five full years of global demand.

Development of Donald project would initially consist of operations to mine 7.5Mt per year of ore to produce 200,000 to 250,000t per year of heavy mineral concentrate (HMC) and around 7,000 to 8,000 per year of rare earth element concentrate (REEC).

Soon after commencing Phase 1, the venture will double ore production to 15Mt per year to produce 400,000 to 500,000 of HMC and 13,000 to 14,000t per year of REEC.

Astron, with a 51% interest, will be the Manager and Operator of the Venture, with specified major decisions subject to approval of both parties.

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