The Eneabba facility aims to produce both light and heavy separated rare earth oxides.
Australian mining company Iluka Resources has secured additional government backing for its rare earth refinery in Eneabba. Australia’s export credit agency, Export Finance Australia, has confirmed a loan of approximately $1.15 billion to support the continued construction of the refinery in Western Australia. Iluka expects to draw down the first tranche of around $870 million by the end of 2026. By then, the company anticipates the project will be approximately 75% complete, compared with more than 50% currently.
The Eneabba refinery is designed to produce both light and heavy separated rare earth oxides. Initially, the plant will process existing stockpiles generated from Iluka’s mineral sands operations. Over time, it is expected to expand its feedstock base to include material from the company’s future mining projects as well as third-party suppliers.
The latest financing package builds on previous government support for the refinery. Through the project, Australia aims to strengthen its position in the global rare earth supply chain, particularly in downstream processing—an area where China maintains an even stronger market position than it does in rare earth mining itself.
Alongside the financing announcement, Iluka also revealed a four-year offtake agreement with an undisclosed global automotive manufacturer. The contract is expected to account for approximately 10% of the refinery’s planned production over the initial four-year period.
Photo: iStock/qwerty01
