Donald wins major project status and $80m financing
Astron’s (ASX: ATR) Donald rare earth and mineral sands project, located in the Murray Basin, Victoria, has been recognised by the Federal Government for its national importance.
The project is one of the world’s most significant rare earth resources and is expected to be the fourth-largest rare earth mine outside of China once operational.
Astron is developing the project as a joint venture with US-based critical minerals company Energy Fuels.
The companies have also received a conditional letter of support from Export Finance Australia for a project financing facility, representing a major milestone in progressing funding initiatives.
The shovel-ready project is one of Australia’s most advanced critical mineral projects, targeting the production of rare earth elements (REEs), which will be shipped to Energy Fuels’ mineral processing facility in the US for global supply chains.
It features a total mineral resource of 1.81bt with a planned mine life of more than 58 years over two phases. It will produce zirconium, titanium and rare earth elements, including neodymium and praseodymium — elements vital to clean energy and advanced manufacturing.
The total funding requirement for the projects is estimated to be $520m and the joint venture partners are targeting a 50:50 debt-to-equity gearing ratio.
Astron managing director Tiger Brown says the support will streamline our engagement with federal agencies and accelerate our pathway to development.
“The Donald project will create significant employment opportunities and deliver long-term economic benefits to the Wimmera region of Victoria as well as strengthen Australia’s sovereign capability in critical minerals and advanced technology supply chains,” he said.
When in production, Phase 1 of the project is expected to produce, on average, 7.2ktpa of REEC containing both light and highly strategic heavy rare earths.
The heavy rare earths expected to be produced from Phase 1 would satisfy about one third of US demand for dysprosium and a quarter of US demand for terbium — elements that are critical to the clean energy, defence and advanced manufacturing industries.
Energy Fuels’ White Mesa mill in Utah, US, currently has the capacity to process all the project’s Phase 1 production. The mill also has the capacity to produce up to 1000t of separated neodymium-praseodymium oxide, and Energy Fuels expects to commission the capacity to produce separated dysprosium, terbium and potentially other heavy REE oxides.
The Victorian Government has already given final approvals and production at Donald is planned to commence as early as 2027.