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Australian Strategic Materials hits key milestone with hot commissioning underway on neodymium furnace at Korean Metals Plant

Last updated: 09:25 25 Nov 2021 AEDT, First published: 09:07 25 Nov 2021 AEDT

Australian Strategic Materials Ltd - Australian Strategic Materials hits important milestone with commencement of hot commissioning on its neodymium furnace in South Korea
Presentation of ASM metal samples to South Korean Deputy Prime Minister Hong Nam-ki.

Australian Strategic Materials Ltd (ASX:ASM) has hit an important milestone with hot commissioning underway on the neodymium furnace at its Korean Metals Plant in Ochang Province, South Korea.

This included firing up the plant’s furnaces, processing feed material and casting the plant’s first ingots of neodymium metal.

This represents the first phase of commissioning activities, with additional modules of the Korean Metals Plant undergoing construction and installation.

These first phase commissioning activities are planned to continue through the first half of 2022, with the full scale, 5,200 tonnes per annum plant due for completion in the second half of 2022.

Updated production guidance will be provided once the first phase of commissioning is complete. 

Alternative secure supply chain

Australian Strategic Materials managing director David Woodall said the hot commissioning milestone was an important one for the company as it moved towards the completion of the Korean Metals Plant.

He added: “The team in South Korea has worked tirelessly to put us in a position to start commissioning activities at the Korean Metals Plant, despite the logistical and supply constraints as a result of COVID.

“Although, we have more work to do to complete the installation of the facility and commission the full plant, this is a great early sign that our plant is working as expected for this stage.

“Australian Strategic Materials is moving closer to producing commercial quantities of titanium and permanent magnet alloy, as part of our strategy to provide an alternative, secure supply chain for critical metals.”

South Korea deputy Prime Minister visits

The commissioning was marked by a visit to the plant by South Korea's Deputy Prime Minister Hong Nam-ki.

Woodall said: “We were also extremely honoured to have Deputy Prime Minister Mr Hong Nam-ki visit us at this significant stage for the business.”

Hong met with representatives from the ASM Korean Metals Plant.

‘Mine to metal’ producer of critical metals

Australian Strategic Materials is an integrated materials business and emerging 'mine to metal' producer of critical metals.

Its cornerstone 100%-owned Dubbo Project is a potential long-term resource of rare earths, zirconium, niobium and hafnium in central-western NSW, Australia.

It represents an alternative, sustainable and secure source of these metals, which are critical for a diverse range of advanced and clean technologies.

ASM’s metals business is founded on an innovative metallisation process that converts oxides into high-purity metals, alloys and powders using less energy than conventional methods.

The pilot plant in South Korea has demonstrated the commercial scalability of the process and successfully produced a range of high-purity metals and alloys, including titanium, neodymium, praseodymium, dysprosium and zirconium.

Following this success, the company’s first metallisation plant is being constructed in South Korea to initially supply a range of critical metals including rare earth metals and alloys, zirconium, and titanium.

The company's market cap is approximately A$1.869 billion and earlier this month securities hit a new record of A$14.15 having risen from A$4.08 on May 9.

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Rowena Smith, CEO and managing director of Australian Strategic Materials Ltd (ASX:ASM, OTC:ASMMF), joins Jonathan Jackson in the Proactive studio to discuss the company’ s Dubbo Project, in Central West New South Wales. This project aims to extract and process critical minerals and rare earth...

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