Australian Strategic Materials (ASM) has received a non-binding letter of intent subject to conditions from the Export-Import Bank of the United States (US EXIM) for a debt financing that could amount to up to 600 million US dollars for its rare earths project Dubbowhich is located in New South Wales, Australia.
The financing is conditional on the use of U.S.-sourced materials during construction and underscores the project’s strategic relevance to the global critical minerals supply chain.
Dubbo rare earth project financing
Approval of this financing by US EXIM is pending a detailed review and ASM securing all necessary approvals to move forward with the project. This step represents remarkable progress in ASM’s financing efforts for the Dubbo Project and demonstrates the broad support the company has received from government institutions, investors and industry sectors, especially in North America.
Collaboration between Australia and the United States in the development of secure and sustainable supply chains for critical minerals has been largely driven by the Australia-U.S. Critical Minerals Working Group. In this context, Minister Madeleine King has played a crucial role in actively promoting Australia’s critical minerals projects. critical minerals projects in North America, strengthening bilateral relations and opening up new funding opportunities that respond to the common objectives of both countries.
Previously, ASM had received a conditional funding approval of A$200 million from Export Finance Australia (EFA) for the Dubbo Project. Now, with US EXIM’s letter of intent, the interest and confidence in the construction phase of the project is evident. Although the letter is not final and is subject to conditions, it marks a step forward in the consolidation of financial and customer relationships in North America.
Rowena Smith, Managing Director and CEO of ASM, emphasized the global importance of the Dubbo Project as a key resource of rare earths and critical minerals, underscoring its potential to support the shared goals of Australia and the United States to ensure reliable, responsible and secure global access to these vital resources. “Receiving this letter of interest from US EXIM after extensive collaborations with various governmental and industrial entities in the United States reinforces our commitment and expectation to deepen the relationships established in this region.“, he said.
Importantly, the Dubbo Project initiative and potential financial backing from US EXIM strengthen ASM’s position on the international critical minerals scene and underscore the growing importance of strategic alliances in the critical minerals industry. These cross-border collaborations are critical to ensure resilient and sustainable supply chains that can withstand the geopolitical and environmental challenges of the future, paving the way for a new paradigm in the exploitation and use of critical mineral resources.
What are rare earths?
The rare earths are 17 chemical elements, including 15 lanthanides (cerium, dysprosium, erbium, europium, gadolinium, holmium, ytterbium, lanthanum, lutetium, neodymium, praseodymium, promethium, samarium, terbium and thulium) plus scandium and yttrium, thus grouped because they share physicochemical characteristics, such as their electronic configuration. These elements can be exchanged in various minerals due to their similar chemical reactions.
These are divided into light, heavy and medium rare earths, with medium rare earths ranging from samarium to gadolinium. There are about 200 minerals containing rare earths, often finding several elements together because of their chemical similarities. Cerium is the most abundant in the earth’s crust, more than copper, while neodymium and lanthanum are more common than nickel, lead and cobalt.
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Source: mining-technology.com
Photo: shutterstock
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