Iluka secures additional support of up to USD 305 million as processing plant construction costs rise.
The Australian mining company Iluka Resources has secured additional government support for the construction of its Eneabba rare earth refinery. According to an announcement by the Australian government on Friday, up to USD 305 million in funding will be provided for the project. Financial Times (paywall) reports that this decision follows over a year of negotiations. The original 2022 loan amount was adjusted due to increased estimated construction costs (as previously reported).
The partnership aligns with the government’s “Future Made in Australia Act,” which aims to promote key industries such as critical minerals and clean energy, Iluka stated in a release (PDF). The additional financing is contingent upon securing corresponding offtake agreements.
Refining Highly Sought-After Heavy Rare Earths Also Planned
Eneabba is set to become Australia’s first refinery capable of producing both light and heavy rare earths. The latter are considered particularly critical due to their rarity and the complexity of their extraction processes. At the same time, they are highly in demand for technologies like wind power and electric mobility, primarily in the form of permanent magnets.
In addition to processing raw materials from Iluka’s own mines, Eneabba will also be open to other domestic companies. Commissioning is planned for 2027, although the project was originally slated to begin operations next year (as previously reported).
Resource-rich Australia is increasingly positioning itself as an alternative supplier of raw materials to its Western partners, challenging industry leader China. The government has already provided substantial support to the mining sector, including the construction of another rare earth refinery, run by Lynas, which is already in operation. Australian Resources Minister Madeleine King described the promotion of the industry as a “national mission,” while emphasizing that success also depends on long-term foreign investments.
Photo: dannyfroese via Canva