Two critical minerals projects approved for development by VIC Govt

The Victorian Government has given the green light to the development of two critical minerals projects that are vital to building renewable energy infrastructure. 

Signing off the Environmental Effects Statement (EES) for the Goschen Rare Earth and Mineral Sands Project as well as the Avonbank Mineral Sands Project – with conditions – marks a significant milestone in the approval process. 

The projects are still subject to further approvals for a mining licence as well as a mine work plan which involves consultation with the community. Environmental Protection and Biodiversity Conservation Act 1999 approval from the Australian Government is also required. 

“It’s crucial that we balance development with the environment and these approvals put in place safeguards to protect the environment, including vulnerable species and habitats,” Minister for Planning Sonya Kilkenny said. 

“We’re developing a new critical minerals industry for Victoria – providing the essential minerals we need for our renewable energy transition, and new opportunities and benefits for our State,” Minister for Energy and Resources Lily D’Ambrosio said. 

“These projects are another step closer to becoming a reality and once secured will deliver more jobs and great economic benefits for regional Victoria,” Minister for Economic Growth Tim Pallas said. 

The two projects are the first mineral sands mine projects to be given the green light since 2008. Not only will these projects inject billions of dollars into regional communities, but they will also create hundreds of jobs and unlock critical minerals that are essential for the manufacturing of wind turbines, electric vehicles, and everyday technologies like electronics and computers. 

WIM Resources’ Avonbank Mineral Sands Project is located about 15 kilometres north of the City of Horsham in the Wimmera region. This project is expected to produce approximately 311 million tonnes of minerals including zircon, titanium and rare earth minerals. The project is also anticipated to provide a $3.5 billion economic boost to the region and drive industries across the State by a further $15 billion. 

“We would like to thank the community, our team and stakeholders involved in the EES process over the past five years. WIM will continue to work closely with stakeholders, including the local community, as we bring Avonbank towards production. Our work on the Avonbank demonstration trial shows that mining and agriculture can successfully coexist, for the betterment of the region. WIM remains committed to driving the project forward and working with stakeholders to ensure the local and regional benefits are realised,” WIM Executive Team Eddy Wu and Michael Winternitz said. 

“Our project will support 967 full-time equivalent (FTE) jobs per annum for the State of Victoria, for over 30 years and will inject $15 billion in gross revenue across a range of industries, and $3.5 billion in gross state product within the Wimmera Southern Mallee region. The WIM Resources Board looks forward to working with all stakeholders as we bring Avonbank into production,” John Bradley said on behalf of the WIM Resources Board of Directors. 

VHM Limited’s Goschen Rare Earth and Mineral Sands Project, on the other hand, is located in the Loddon Mallee region, about 35 kilometres southwest of Swan Hill and 275 kilometres north of Melbourne. This project will focus on the extraction of rare earths including neodymium, praseodymium, dysprosium, and terbium while injecting $2 billion into the region’s economy. 

As part of strict environmental controls, both projects must minimise the clearance of native vegetation, consider local biodiversity and undertake rehabilitation as the companies operate their respective mines by limiting the size of the pit and returning it to farmland sooner. 

“VHM’s achievement in obtaining Ministerial endorsement of Goschen’s EES is a major step in the initiation of a new rare earth and minerals sands project in Victoria. 

“This recommendation is the result of extensive technical, environmental, and social studies conducted over several years and follows rigorous evaluation process. It is a momentous outcome for all parties involved. 

“On behalf of the VHM Board I wish to thank the Hon. Sonya Kilkenny and other key decision-making authorities involved in the outcome one the Goschen EES assessment. 

“I thank VHM’s resilient shareholders who have been on VHM’s exploration and approvals journey with us, and I am looking forward to progressing the project through its next stages to FID (final investment decision), development and ultimate production,” VHM Limited Chief Executive Officer Ron Douglas said. 

The Labor Government recently released its Critical Minerals Roadmap which gives the industry confidence to invest, develop projects and empower regional communities. The State’s critical mineral resources could position Victoria as a global leader in the renewable energy supply chain and create 7,000 additional jobs. 

Source: Premier of Victoria – Media Centre; WIM Resources (1, 2); VHM Limited (1, 2); Australian Mining; ABC News; Minerals Council of Australia