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Australia grants further $258 million in financing for Iluka's rare earths refinery

The Australian federal government will approve A$ 400 million ($ 257.96 million). in funding for Iluka Resources' Eneabba uncommon earths refinery in the state of Western. Australia, in addition to its previous A$ 1.25 billion loan, the miner stated on Friday.

The mineral sands manufacturer's Eneabba refinery in Western Australia is expected to cost. in between A$ 1.7 billion and A$ 1.8 billion, with production of light and heavy rare earths essential. for a variety of tech applications-- from electrical lorries to rockets-- due to start at the end. of 2026.

Iluka had actually very first committed to developing what will be Australia's first completely incorporated rare. earths refinery in 2022, with the business contributing A$ 200 million together with the government's. loan.

The refinery forms part of a push by the United States and allies such as Australia, to. establish brand-new sources of important minerals, consisting of rare earths, to diversify the supply chain. away from leading producer China.

The new financing goes through the business protecting offtake deals for the refinery, and can. only be used after the original A$ 1.45 billion financing is completely drawn, Iluka said.

Iluka continues to engage actively with possible offtake counterparties and is concentrated on. protecting commercially-attractive supply contracts for ... the Eneabba refinery, the mineral. sands manufacturer stated.

Iluka will also contribute a more A$ 214 million in equity to the refinery, it included.

(source: Reuters)