Astron’s Donald rare earths project in Victoria has received conditional approval for up to $180 million in federal financing, marking another step towards a final investment decision for the proposed mine and processing facility.
The National Reconstruction Fund Corporation (NRFC) has conditionally approved up to $110 million in senior debt, while Export Finance Australia (EFA) has conditionally approved financing of up to $70 million.
The commitments form part of a proposed $200 million project finance facility for the Donald Rare Earth and Mineral Sands Project in Victoria’s Wimmera region.
Donald Mineral Sands, a joint venture between Australian company Astron and US-based Energy Fuels, is a project that contains one of the world’s largest rare earths resources.
According to the NRFC, the project has a proposed 40-year Phase 1 operating life and would produce light and heavy rare earths used in high-performance magnets, electronics, defence systems and clean energy technologies.
Astron managing director Tiger Brown welcomed the conditional funding commitments.
“The funding is a major vote of confidence in the globally significant Donald Project and an important milestone on our long road to making it a reality,” Brown said.
“Together with Energy Fuels, we look forward to finalising the financing and moving to a final investment decision.”
Under the joint venture arrangements, Energy Fuels has the right to purchase and process all rare earth element concentrate produced at Donald through its White Mesa Mill in Utah.
The NRFC said the arrangement would support the development of an integrated rare earths supply chain linking Australian resources with downstream processing in the United States.
The project has secured its necessary approvals and is expected to become Victoria’s first new mine in more than a decade, according to the NRFC. The corporation estimates the development will create 200 construction jobs and 160 ongoing operational positions.
“The Donald Mineral Sands Project will position Australia as an even more reliable supplier of critical minerals to our international partners and allies,” Federal Resources Minister Madeleine King said.
“Developing new sources of rare earths is vital to diversifying global supply chains and ensuring the materials needed for clean energy, advanced technologies and defence applications are available for decades to come.”
The funding announcement comes one year after the signing of the United States–Australia critical minerals framework, which the Federal Government is using to support investment in strategic minerals projects.
Separately, EFA has conditionally approved a $US41.4 million loan to Global Advanced Metals to support tantalum production.
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