Financing offer from Australian Export Finance; raw materials from the Donald deposit to be processed in the U.S.
Australia’s Export Finance Agency (EFA) has extended a non-binding financing offer of up to USD 52 million for the domestic rare earth and zircon project Donald (PDF). The deposit, located in southeastern Australia, is being developed by the Australian Astron Corporation and the U.S. company Energy Fuels. Mining of rare earths from this mineral sands deposit could begin as early as 2027.
According to Astron (PDF), the project ranks among the three largest rare earth resources outside China and is also the world’s largest untapped zircon resource. In its first phase, the project is expected to produce over 7,000 tons of rare earth concentrate annually, including heavy rare earths, a segment currently dominated by China and subject to export restrictions. Company estimates suggest that production could meet approximately one-third of the U.S. demand for dysprosium and one-quarter of the demand for terbium. All raw material will be processed at Energy Fuels’ White Mesa Mill in Utah. The facility recently achieved a milestone with its pilot production of heavy rare earth oxides (we reported).
Donald Set to Benefit From Stronger Australian Government Support
One day before the financing announcement, the Australian government designated Donald as a “Major Project” (PDF), recognizing it as strategically important in economic, technological, and security terms. This designation allows Astron and Energy Fuels to benefit from closer engagement with federal agencies, as well as support with permits and regulatory processes.
Read more: The recently signed Australia-U.S. supply chain agreement could further support the development of Donald and other Australian resource projects.
Photo: Cyclonphoto via Canva