- Australian Strategic Materials (ASM) signs an exclusive heads of agreement with South Korean engineering company Hyundai Engineering Corporation (HEC)
- The companies will negotiate a front-end engineering and design (FEED) study and an engineering procurement and construction (EPC) contract for the Dubbo project
- ASM’s Dubbo project is located in NSW and is being developed as a global supplier of rare earth materials
- The company is targeting the FEED contract to be awarded before the end of the current quarter and for the delivery of the FEED in the December 2022 quarter
- Company close up 9.58 per cent to trade at $7.89
Australian Strategic Materials (ASM) has signed an exclusive heads of agreement with Hyundai Engineering Corporation (HEC).
As part of the exclusive deal, the companies will negotiate a front-end engineering and design (FEED) study and the engineering procurement and construction (EPC) for ASM’s wholly-owned Dubbo project.
Specifically, there’s an exclusivity period for the award of FEED by March 31 and subject to the successful delivery of FEED for the award of EPC until February 25, 2023.
The Dubbo Project is located 25 kilometres south of Dubbo in central-western New South Wales.
Australian Strategic Materials’ goal for the project is to develop it into a global supplier of zirconium and rare earth materials. These materials are in high demand for a range of technologies – in particular clean energy and transportation.
ASM Managing Director David Woodall said engaging with Hyundai Engineering marked a key milestone in progressing the Dubbo project towards a final investment decision.
“Meeting HEC CEO Mr Kim Chang-Hag and his team show the quality project partner HEC brings,” Mr Woodall said.
“The desire of both HEC and ASM to work in partnership to deliver the Dubbo Project with significant benefits to both Korea and Australia put us in a great position as we continue discussions with Korean financial institutions to fund the development of Dubbo.”
HEC CEO Kim Chang-Hag said he was delighted to be working with Australian Strategic Materials on the FEED study progressing to EPC to develop the Dubbo project.
“We believe we can deliver an innovative and optimised solution to support the development of the Dubbo Project and ASM’s critical metals business in a partnership that helps Korea secure the critical metals it needs for its manufacturing industries.”
ASM’s current target is for the FEED contract to be awarded before the end of March and for the delivery of the FEED in the final quarter of 2022. The terms of the FEED and any EPC (such as the price, scope, and schedule) are yet to be agreed by the parties.
Company shares were up 9.58 per cent to trade at $7.89 at market close.