VHM to produce rare earths in stages

VHM has provided further details on its staged development of the Goschen rare earths and mineral sands project in Victoria.

This will see stage one (from years one to three of production) deliver 1.5 million tonnes per annum (Mtpa) of throughput for 4300 tonnes per annum (tpa) of rare earth mineral concentrate (REMC) production and 69,000tpa of zircon/titania heavy mineral concentrate (HMC).

With construction commencing in the fourth quarter of 2025, stage-one production is set to commence in the fourth quarter of 2026. This will cost $160 million to get up and running.

The combined production of REMC and HMC will then help fund stage-two construction which is set to commence after the first three years of operation. This will cost an additional $85–90 million and support 5Mtpa of throughput for 9000tpa of REMC production and 134,000tpa production.

Stage two will support an additional 19 years of mine life.

Estimates indicate Goschen has a net present value is $1.64 billion and an internal rate of return of 65 per cent for a 3.3-year payback.

Having signed a binding offtake agreement with Shenghe Resources in January 2024 for stage-one REMC and HMC products, VHM said it is advancing discussions with numerous financiers and additional offtake partners.

The company is also focused on securing its mining licence and secondary approvals, having had its environment effects statement (EES) endorsed by the Victorian Government in December.

“The Goschen project represents a world-class opportunity to deliver critical minerals essential for the global energy transition,” VHM managing director Ron Douglas said.

“Our phased development strategy ensures a low-risk pathway to production, with strong cash flows from the initial 1.5Mtpa operation funding the expansion to 5Mtpa.”