Exploration and development company VHM has approved a shift to full-scale development of its Goschen rare earths and mineral sands project in Victoria, abandoning a previously planned staged approach in favour of an immediate five-million-tonne-a-year operation.

The board decision, announced on Monday, allows the project to be developed at its fully permitted five-million capacity, replacing the earlier strategy to begin at 1.5 Mt/y and expand over time.

VHM said the move reflected progress in project approvals, improving market conditions for rare earths, and increasing strategic demand for secure, Western-aligned supply chains.

The Goschen project is already fully permitted, with key mining and environmental approvals in place, positioning it for accelerated development.

The company said operating at full capacity from the outset would enhance project economics and provide immediate exposure to large-scale production, while strengthening its relevance to customers seeking diversified supply of critical minerals.

The decision is also supported by ongoing engagement with export credit agencies, including Export Finance Australia and the Export-Import Bank of the United States, reflecting the project’s strategic importance to Western supply chains.

VHM plans to undertake a full capital cost estimate refresh for the five-million-tonne-a-year development, with completion targeted for June 2026 ahead of a final investment decision later in the year.

Located in Victoria’s Loddon Mallee region, the Goschen project is positioned as a dual-commodity operation, producing both rare-earth elements and heavy mineral concentrates, including zircon and titanium dioxide.