Australian Strategic Materials (ASM) managing director David Woodall thinks reactivating the branch railway line between Dubbo and Toongi could be a "win-win" for the Dubbo Project and the community.
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During a visit to Dubbo this week he told of plans for the yet-to-be-financed project's Toongi site where ASM owns an in-ground polymetallic resource of rare earths, zirconium, niobium, hafnium, tantalum and yttrium.
Mr Woodall says ASM is making progress in becoming a fully integrated mine-to-manufacturer supplier of critical metals.
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It is looking to build a metal plant in South Korea from mid-2022 before replicating it in North America and at Toongi, 25 kilometres south of Dubbo.
Infrastructure at the Toongi site would include an open-pit mine, processing plant, metal plant, chlor-alkali plant and renewable power plant, the latter owned by a third party, Mr Woodall said.
He said between 600,000 and 800,000 tonnes of materials would need to be transported to the Toongi site annually.
"The challenge is how do you transport that," he said at the Church Street office ASM shares with its former owner Alkane Resources.
Mr Woodall said the "original plan" was to send B-doubles along the Obley Road but ASM was reconsidering the reactivation of the branch line.
"Do you have 60 to 70 truck loads a day or run three trains a week?," Mr Woodall said.
Do you have 60 to 70 truck loads a day or run three trains a week?
- Australian Strategic Materials managing director David Woodall
"That's more efficient and has less impact on the community.
"We are realising this is a better solution for the community.
"It's a win-win on both sides."
Mr Woodall said Obley Road would still need to be upgraded even if the branch line did the heavy lifting.
He said the road would be used to transport limestone from Geurie and other products.
"But there would be a lot less trucks on it," Mr Woodall said.
The ASM boss said metals produced at Toongi would be put in "shipping containers and then put on the train and away they go".
"We're talking less than 20,000 tonnes of materials transported out," he said.
Mr Woodall said the shovel-ready project was the focus of ongoing talks with potential investors.
"We are looking to sell 20 per cent of Dubbo as part of that," he said.
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