• Project has all major approvals in place
• Simple technical foundation, scale and strategic relevance in delivering critical minerals
• Supported by Australian and US government export finance agencies

VHM Ltd (ASX: VHM) has announced that the Board has approved the development of the Goschen Rare Earths and Mineral Sands Project (the Project) at its permitted processing capacity of 5 million tonnes per annum (5Mtpa). This replaces the previously announced staged development approach that commences at 1.5Mtpa. The decision reflects significant progress in both the Project's development and the rare earth market, and is underpinned by three key factors: the Project's strong approval position with all major mining and environmental approvals in place, the Project's simple technical foundation, scale and strategic relevance in delivering critical rare earth and mineral sands products into western-aligned supply chains, and continued engagement and support from Australian and United States government export finance agencies, reinforcing Goschen's strategic importance. Operating at full 5Mtpa capacity positions VHM to meet growing global demand for secure, western-aligned critical minerals supply. The benefits of this approach include immediate exposure to full-scale production, enhanced strategic relevance for global customers seeking diversified supply chains, improved operating leverage across rare earths and mineral sands products, superior economics and cashflow fundamentals, and alignment with government, customer and financier priorities for Western critical minerals supply. As part of the next stage of project development, VHM will undertake a full refresh of the capital cost estimate for the 5Mtpa project to reflect current market conditions and the definitive project implementation plan.

VHM is enthusiastic about progressing the larger development pathway at a time when global markets are increasingly focused on securing reliable, transparent and sustainable sources of rare earths and mineral sands. With its fully approved project, strong technical foundations and favourable jurisdiction, VHM believes it is well placed to play a meaningful role in supplying critical materials essential to clean energy, advanced manufacturing and defence applications.