VHM Ltd (ASX: VHM) has announced that its Board has approved the development of the Goschen Rare Earths and Mineral Sands Project at its permitted processing capacity of 5 million tonnes per annum (5Mtpa). This decision supersedes the previously announced staged development approach that commenced at 1.5Mtpa. VHM Limited is a rare earths and mineral sands company developing the Goschen Rare Earth and Mineral Sands Project, located in the Loddon Mallee Region of Victoria.
The decision to proceed at full capacity reflects significant progress in the Project’s development and the rare earth market, underpinned by the Project’s strong approval position, simple technical foundation, and strategic relevance in delivering critical rare earth and mineral sands products. All major mining and environmental approvals are currently in place. Furthermore, continued engagement and support from Australian and United States government export finance agencies reinforce Goschen’s strategic importance.
Operating at full 5Mtpa capacity positions VHM to meet growing global demand for secure, western-aligned critical minerals supply. This approach provides immediate exposure to full-scale production, enhances strategic relevance for global customers seeking diversified supply chains, and improves operating leverage across rare earths and mineral sands products. It also promises superior economics and cashflow fundamentals, aligning with government, customer, and financier priorities for Western critical minerals supply.
As part of the next stage of project development, VHM will undertake a full refresh of the capital cost estimate for the 5Mtpa project to reflect current market conditions and the definitive project implementation plan. The refresh will be underpinned by the completed engineering and cost work disclosed to date and will be completed by June 2026 in line with the planned mid-year FID.
