Critical minerals company Astron has delivered a bankable feasibility study (BFS) for Phase 1 of its Donald rare earth and mineral sands project, confirming strong project economics as it advances towards a final investment decision (FID) in the second quarter of 2026.

The Donald project, in Victoria, Australia, is targeting critical minerals including neodymium, praseodymium, dysprosium and terbium, as well as zirconium and titanium products.

The BFS outlines a pre-tax net present value of A$759-million and an internal rate of return of 19.3%, based on an estimated capital cost of A$450-million. The project is expected to generate average earnings before interest, taxes, depreciation and amortisation of A$119-million from revenue of about A$262-million over an approximately 40-year mine life.

Astron said negotiations with lenders for a project financing package of up to A$300-million were well advanced, with a credit-approved term sheet representing the final milestone ahead of FID.

“The bankable feasibility study highlights the financial and technical viability of a major new Australian source of critical minerals,” MD Tiger Brown said, adding that the project was positioned to deliver rare earth element (REE) concentrate as early as the first quarter of 2028.

The BFS incorporates several optimisation measures, including the adoption of an in-pit mining unit plant, which reduces operational complexity and costs, and updated metallurgical work that increases the proportion of high-value heavy REEs in the final product stream.

Despite softer mineral sands pricing and a stronger Australian dollar, the study confirms the project’s resilience, with forecast life-of-mine revenue of A$10.4-billion and free cash flow of A$3.3-billion.

The project is being developed as a joint venture with Energy Fuels, which is earning a 49% interest by funding the bulk of Phase 1 equity. Astron will retain a 51% stake and act as project manager.

Phase 1 is expected to produce about 7 100 t/y of REE concentrate and 192 000 t/y of heavy mineral concentrate, with higher output in the early years. A second phase is planned to significantly expand production and extend the project life beyond 50 years.