Australia to fund rare earths project with A$180M deal
The Donald project in Victoria seeks A$70M from Export Finance Australia and A$110M from the National Fund.
Australia has provisionally approved a $180 million (US$126 million) loan for a rare earths project developed by Astron and Energy Fuels, pending a construction decision by the end of the year. The financing package, part of a proposed $200 million debt, includes $70 million from Export Finance Australia and $110 million from the National Reconstruction Fund.
Energy Fuels' CEO, Ross Bhappu, highlighted the importance of the project's heavy rare earth content, which includes dysprosium and terbium, in providing a long-term source of feedstock for processing and separation at their Utah mill. The funding will support the development of a source of light and heavy rare earths, aligning with Australia and the United States' efforts to diversify mineral supplies used in magnets, electronics, and defence equipment.
The first stage of the Donald project, located 300 km northwest of Melbourne, is expected to produce 9,000 tonnes of rare earth concentrate and 225,000 tonnes of heavy mineral concentrate annually within the first five years. The concentrate produced would contain various rare earth elements, such as neodymium, praseodymium, terbium, and dysprosium, and zircon and titanium dioxide minerals.
Energy Fuels plans to purchase the rare earth concentrate for its Utah mill, while Astron expects to buy the heavy mineral concentrate for sale to customers.
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