US, Australia offer $600M backing for rare earth refinery project

Australia and the US have offered potential financing of up to about A$849 million ($600 million) for a rare earths refinery project by Tronox Holdings, one of the clearest concrete commitments so far under their critical minerals partnership.

Export Finance Australia and the US Export-Import Bank issued coordinated letters of support or interest of as much as A$424 million each for the project, which spans Western Australia and the US, according to a joint release late Sunday.

The refinery would use existing mining and processing capacity to produce mixed rare earth carbonate containing both light and heavy elements, materials used in defense systems, manufacturing and clean energy technologies.

The agencies also issued letters of support or interest of up to A$500 million each for Ardea Resources Ltd.’s Kalgoorlie nickel project in Western Australia. The project has Australia’s largest nickel-cobalt resource, according to the statement.

The announcements are part of a broader push by the allies to secure supply chains for critical minerals, following a framework agreement signed at the White House last year.

(By Jason Gale)