Astron has strengthened the case for its Donald rare earth and mineral sands project in Victoria, unveiling a bankable feasibility study (BFS) that highlights robust long-term returns and a pathway to final investment decision (FID) in 2026.
Phase one development is expected to deliver average annual earnings before interest, taxes, depreciation and amortisation (EBITDA) of $119 million from $262 million in revenue over an approximately 40-year mine life.
This generates a pre-tax net present value (NPV) of $759 million and an internal rate of return (IRR) of 19.3 per cent.
Capital expenditure for the first phase is estimated at $450 million, with 94 per cent of costs based on market-tested or tendered pricing, underscoring the maturity of the project as it moves towards FID, targeted for the second quarter of 2026.
Astron managing director Tiger Brown said the BFS demonstrates both the technical and financial strength of a project positioned to become a key supplier of critical minerals.
“The bankable feasibility study highlights the financial and technical viability of a major new Australian source of critical minerals,” Brown said.
“The Donald project is at the forefront of a new generation of critical minerals projects.
“It will deliver rare earth concentrate, containing light and heavy rare earths, to our joint venture partner’s downstream processing facilities as early as the first quarter of 2028.”
Located in Victoria’s Wimmera region, the Donald project is designed to produce both rare earth element concentrate (REEC) and heavy mineral concentrate (HMC), targeting key materials such as neodymium, praseodymium, dysprosium and terbium.
Phase one is expected to produce an average of 7100 tonnes per annum of REEC and 192,000 tonnes per annum of HMC, with higher output rates during the initial five years of operation.
The project is being developed as a joint venture with US-based Energy Fuels, which is earning a 49 per cent stake by funding the majority of phase one equity. Astron will retain a 51 per cent interest and act as project manager.
The BFS incorporates several key improvements, including an updated ore reserve, enhanced metallurgical recoveries, and the adoption of a mobile in-pit mining unit plant to simplify operations and reduce risk.
Despite softer mineral sands pricing assumptions and a stronger Australian dollar, Astron said the project remains resilient, supported by its dual revenue streams and growing demand for rare earths.
Market conditions are also trending favourably for heavy rare earth elements such as dysprosium and terbium, which are critical to high-performance magnets used in electric vehicles and advanced technologies.
Astron is progressing financing discussions, with negotiations underway for a debt package of up to $300 million. The completion of a credit-approved term sheet is expected to mark the final step before FID.
If approved, first production is targeted for 2028, positioning the Donald project as a long-life contributor to Australia’s critical minerals supply chain.
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