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Bechtel to provide engineering services for Australian Strategic Materials’ Dubbo project

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Australian Strategic Materials (Holdings) Pty Ltd (ASMH), a subsidiary of Australian Strategic Materials Limited, has enlisted global engineering firm Bechtel Mining and Metals, Inc. to conduct Front-End Engineering Design (FEED) services for ASM’s Dubbo project in New South Wales, Australia.

The Dubbo project’s Toongi Deposit, a polymetallic resource, contains light and heavy rare earths, zirconium, niobium, and hafnium. With reserves supporting an initial 20-year project life and potential for extended mine life, ASMH aims to progress the project into the execution phase.

Bechtel’s contract includes advancing design for both the process plant and non-process infrastructure (NPI) facilities, preparing for procurement of long lead items, and identifying early works opportunities for program reduction and risk reduction.

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ASMH will simultaneously fulfill requirements for the project’s environmental impact statement and development consent commitments during the FEED services period.

Upon completion of FEED services, Bechtel will deliver documentation supporting ASMH’s feasibility study, including updated cost estimates and schedules, crucial for final investment decision (FID) on the Dubbo project.

Rowena Smith, Managing Director and CEO of ASM, expressed excitement about the contract with Bechtel, highlighting their expertise and collaborative approach. Bechtel’s services are estimated at approximately A$55 million ($36 million), contingent on funding confirmation and necessary approvals from ASMH.

ASMH anticipates commencing FEED services in September 2024, with completion expected by the first half of 2026. Project execution and production are forecasted to commence in 2028.

Ailie MacAdam, President of Bechtel Mining and Metals, emphasized the strategic importance of the Dubbo project and Bechtel’s commitment to its success, including supporting ASM in accessing US government funding for critical minerals supply chain development.

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