Rare earth in northern Victoria

The $13 billion pact is designed to provide security of supply for critical minerals as China withholds exports and the technology needed for processing.

Both countries will each invest at least $1.5 billion in the next six months to develop critical minerals projects in Australia, according to the joint agreement.

Industry Minister Tim Ayres said a pipeline of projects worth $8.5 billion had been agreed or were in the process of being delivered.

The VHM company has been developing a mine known as the Goschen Project on cropping country, 35km south-west of Swan Hill, for the last two years.

The Goschen deposit contains a globally significant critical minerals inventory, containing rare earths neodymium, praseodymium, dysprosium, and terbium in addition to critical heavy minerals zircon and rutile.

These minerals are used for the manufacturing of electric vehicles, medical implants and mobile phones.

VHM CEO Ron Douglas said the Goschen Project could provide key heavy rare earths like dysprosium and terbium.

“Goschen is poised to become a vital new supplier to global markets, supporting industries such as clean energy, defence and advanced manufacturing,” Mr Douglas said in a report to shareholders.

“Goschen represents a unique opportunity for Australia to expand its supply of critical minerals to the world, while delivering long-term value for shareholders and economic benefits to the Loddon Mallee region.”

The Victorian Government said the project must comply with strict environmental controls minimising the clearance of native vegetation, considering local biodiversity and undertake rehabilitation as they mine, limiting the size of the pit and returning it to farmland sooner.

Mining licences were granted in April this year, and the company is now seeking approval for a cultural heritage management plan and a work plan.

The company is negotiating with Australian, US, Japanese, Korean and European companies.