Australian Strategic Materials Holdings (ASMH) has engaged Bechtel Mining and Metals to undertake FEED services for its Dubbo Project, which focuses on rare earths and critical minerals in New South Wales (NSW).
This collaboration is set to advance the design of the process plant and non-process infrastructure (NPI) facilities, marking a significant step towards the project's execution phase.
Bechtel's contract encompasses the enhancement of engineering designs, supporting the procurement of long lead items and preparing the site for construction.
The company is tasked with finalising project strategies, execution plans and baseline scope, which are essential for the procurement process and engaging execution contractors.
Bechtel will also explore early works opportunities to potentially reduce the programme timeline and implementation risks.
Concurrently, ASMH will address the environmental impact statement and development consent commitments during the FEED period.
Upon completing the FEED services, Bechtel will provide ASMH with documentation to aid in finalising a feasibility study, which will include updated capital and operating cost estimates, as well as a project schedule.
This documentation is crucial for ASMH to advance funding activities and prepare for a final investment decision (FID) on the Dubbo Project.
The contract stipulates that Bechtel's services, estimated at A$55m, will be provided on a rates basis for completed work.
The initiation of Bechtel's services is contingent upon ASMH securing necessary funding and approvals and issuing a notice to proceed.
ASMH anticipates beginning the FEED services in September 2024, with an estimated completion time of 18 months, leading to a potential FID in the first half of 2026.
Following the project's estimated timeline, production is expected to start in 2028.
This partnership and the new contract present ASM with opportunities to attract funding in North America and Australia, positioning the company to proceed with the FID for the Dubbo Project.
