Alkane Resources Ltd (ASX:ALK) managing director Nic Earner tells Proactive Investors that the new US Defense ban preventing the purchase of rare earth magnets from China, which currently produces 85-90% of the world’s supply, could mark a windfall for the NSW-focused company.
Alkane's construction-ready Dubbo Project features a polymetallic ore body capable of producing a number of commodities including magnet materials, and is now in the financing and offtake stage. The impending supply crunch stemming from this new US legislation increases interest in the development of the mining operations. The project's pre-tax net present value (NPV) has been forecast at between $909 million and $1.297 billion, depending on the development route.
Earner also touches on the latest works at the Tomingley Gold Mine project, from which significant news is expected to flow in the coming months.