Australian Strategic Materials (ASX:ASM) has been awarded a $6.5M grant from the Australian Government's Critical Minerals Development Program for its Dubbo Project in central-western New South Wales.

The critical metals producer said the funding will be used for non-process infrastructure, which includes residue storage, water management, utility design, and greenhouse gas emission reduction studies.

Australian Strategic Materials also said the total cost for these activities is estimated at $15.35M, with ASM contributing $8.85M.

The Dubbo Project aims to create new jobs and opportunities in the region while also focusing on strong ESG performance.