Australian Strategic gets debt funding for rare earths project

Reuters | April 25, 2024 | 4:45 pm Australia Canada Rare Earth

Australian rare earths developer ASM eyes US defence funding

ASM is developing its Dubbo rare-earths project in New South Wales. (Image courtesy of Australian Strategic Materials .)

Australian Strategic Materials said on Friday it has received a non-binding letter of interest for a debt funding package of up to A$400 million ($260.84 million) from Canada’s official export credit agency.

The funding is for the development of its rare earths and critical minerals Dubbo Project in New South Wales, the company said.

As per the letter of interest, debt provider Export Development Canada will also supply equipment and services from Canadian companies for the development of the Dubbo project.

The offer comes amid rising interest from North American parties in Australian miners, after Australia and North America decided to set up an alternative critical minerals supply chain between the two regions.

“Our focus has been on building strategic partnerships in North America that support the development of our mine to metals strategy,” said CEO Rowena Smith.

The letter of interest will expire on 25 April 2025.

($1 = 1.5335 Australian dollars)

(By Adwitiya Srivastava; Editing by Shailesh Kuber)