Northern Minerals Limited (ASX: NTU), an Australian heavy rare earths-focused company, announced the results of its Definitive Feasibility Study (DFS) for the Browns Range Heavy Rare Earths Project in Western Australia. Northern Minerals owns 100% of the Browns Range Heavy Rare Earths Project in the East Kimberley region of Western Australia. The Project’s deposits are uniquely rich in the heavy rare earth elements dysprosium (Dy) and terbium (Tb). The DFS underscores the project’s strategic global value, demonstrating its technical and financial viability.
The DFS highlights the project’s significance as a strategic heavy rare earth element (HREE) asset, underpinned by strong technical and financial credentials. As the global shift towards reducing carbon emissions and adopting renewable energy technologies increases, the demand for critical minerals like heavy rare earth elements is also rising. These HREEs are crucial components in clean energy technologies, advanced defence systems and automotive applications. The Browns Range project is positioned as one of the most advanced pure-play HREE projects of scale outside of China, with first production targeted for 2028 to meet a forecast global shortfall in Dy/Tb supply.
Key findings of the DFS include an ore reserve estimate of 5.18 million tonnes at 0.88% TREO for 45,800 tonnes of TREO. The mine plan includes open pit mining transitioning to underground mining, supporting an 11-year Life of Mine (LOM). The project is expected to produce approximately 17,500 tonnes per annum of xenotime concentrate at approximately 25% TREO, containing approximately 4,350 tonnes per annum of TREO. The company has a long-term supply agreement with Iluka Resources (ASX: ILU) for a binding contract to supply 30,500 tonnes of Total Rare Earth Oxides (TREO) contained within a 20-30% xenotime concentrate to Australia’s first fully integrated rare earths refinery at Eneabba.
The DFS outlines a pre-production capital expenditure of A$592 million and operating costs of approximately A$129 million per annum. Based on the production target mine plan, the project forecasts an average annual EBITDA of A$175 million and a pre-tax NPV8 of A$187 million, using base case pricing forecasts by CRU International Limited. Northern Minerals is actively engaged in ongoing work programs and project finance discussions to advance the Browns Range Heavy Rare Earths Project towards construction and production.
