Metals producer Australian Strategic Materials (ASM) has received a letter of interest from the US Export-Import Bank (Exim) to provide $600mn in debt financing for the construction of the Dubbo rare earths and critical minerals mining project in New South Wales, the company said today.
The non-binding letter of interest is subject to ASM obtaining all necessary approvals for the Dubbo project and is linked to the supply of US equipment, goods and services for use in the project's construction phase.
ASM secured a pledge from government credit agency Export Finance Australia in 2021, to provide A$200mn in debt financing for the Dubbo project. The company is continuing to hold discussions with potential strategic investors and offtake customers to secure the equity funding portion of the project finance package. The company has not yet indicated a firm target start date.
The Dubbo project will produce a range of metal oxides and mixed chlorides through the mining and processing of a large ore resource that hosts neodymium, praseodymium, dysprosium, terbium, zirconium, hafnium and niobium. The products will be metallised at separate ASM plants, the first of which it opened in Ochang, South Korea, in 2022. The South Korea plant is already producing neodymium praseodymium using material sourced from third-party suppliers.
Exim's support for the Dubbo project ties into the US' partnership with Australia to secure critical mineral supply chains.