Company picks partner for Mallee mine while waiting on green light

The "partnership agreement" with an earthmoving company has been announced to the ASX although the Victorian government is still to sign off on the project.

A six-week public inquiry into VHM Ltd's Environmental Effects Statement ended a month ago.

A three-member independent planning panel has to submit its recommendations to the state's Planning Minister within 40 days.

After that a positive ministerial assessment for the Goschen project would allow VHM to apply for its relevant permits and mining licence (already under way), so the company can make its final investment decision.

There is no exact deadline on that panel report, whether it will be made public or when the Minister will make a final decision.

VHM's announcement arrested a slide in share prices for a few days. Share prices have fallen from 50 cents per share at the end of hearing to trade at around 46 cents today (Friday).

Local farmers have opposed the mine plans saying the Cannie Ridge is some of the most fertile cropping country in the southern Mallee.

In the meantime, a wind farm with up to 174 turbines has also been proposed by UK-based renewables giant RES for Cannie Ridge to connect with the controversial VNI West transmission project.

The proposed Cannie Wind Farm would cover about 17,000 hectares (42,008 acres) of privately owned land.

RES says landowners within the wind farm boundary have entered into preliminary agreements to host the wind farm.

RES has identified three study areas for investigations relating to the powerline route from the wind farm site.

RES has submitted a referral to the Victorian government under the Environmental Effects Act.

Mining company VHM Ltd has repeatedly said it wants to get moving as quickly as possible on its open cut mine on the Cannie Ridge once all the approvals are in place.

The freehold land has already been bought from willing sellers for its Goschen mine which covers about 1534 hectares (3791 acres).

VHM's flagship Goschen project will mean 20-25 years of round-the-clock mining to open cut five million tonnes of mineral sands and rare earths every year.

In the past week it has announced the signing of a memorandum of understanding with central Victorian private company Yellow Iron Fleet for mining services for its flagship Goschen mine at Cannie Ridge.

"Developing the fleet requirements and mining approach is a critical step on the pathway to production," the company has told shareholders.

The two companies "intend" to enter into a Mining Partnership Agreement.

Yellow Iron Fleet is said to have extensive experience in large scale bulk earthworks and mineral sands mining operations.

Yellow Iron Fleet is to be responsible for the establishment of all mine site operating facilities, the procurement and maintenance of mining fleet, plant, and equipment, recruitment and management of all mining operators, technical staff and management.

This includes mining and rehabilitation, tailings management and mine production.

The MOU is for a period of six months (unless extended by mutual agreement) to allow VHM to obtain necessary approvals, debt and equity financing and VHM Board approval for the final investment decision.

Yellow Iron Fleet owner and chief executive Andy Hoare said: "We are pleased to be partnering with VHM on this very exciting project.

"Our business has extensive experience within this region over many years and we are very humbled and proud to be able to contribute to the vision."

VHM chief executive Ron Douglas said: "Yellow Iron Fleet is a professional mining services contractor with extensive experience in mineral sands operations and a culture that aligns with VHM.

"This is another major step on VHM's path towards commencing construction at the Goschen project."

About 70 per cent of Goschen's expected revenue will come from rare earth products including neodymium, praseodymium, dysprosium, and terbium, which are critical for manufacturing electric vehicles, energy efficiency and technology.