Energy
Australia Deepens Critical Minerals Push With $1.2 Billion Iluka Loan
Iluka Resources has announced a A$1.65 billion government-backed loan for its Eneabba rare earths refinery in Western Australia Civmec also received a construction agreement from the company and signed a four-year rare earth oxide supply contract with a global automotive firm.
Key Highlights
- Iluka Resources was awarded a A$1.65 billion loan by the Australian government for its Eneabba rare earths refinery.
- The refinery is completed 50% and over 70% would be completed by the end of 2026
- Iluka has also signed a rare earth oxide supply agreement with a global automotive company for four years.
Iluka Resources has received a A$1.65 billion ($1.15 billion) non-recourse loan for the construction of Iluka Resources Ltd.’s Eneabba rare earths refinery project in Western Australia.
Export Finance Australia confirmed access to the funds as part of its normal due diligence process, the company said.
Eneabba Refinery Construction Moves Forward
Western countries are stepping up efforts to secure scarce supplies of rare earth as China is currently the largest producer of those needed for electric vehicles and other technologies.
Iluka stated the first tranche of funding, which totals A$1.25 billion ($823 million), will be fully drawn down by end-September 2026. At that point the Eneabba refinery is anticipated to be approximately 75% finished. The company further stated that the refinery is more than 50% complete now. Iluka said Eneabba would be Australia’s first fully integrated rare earths refinery.
Civmec Awarded Refinery Contract
Iluka said Cimvec has been awarded a contract for structural, mechanical, piping, electrical and instrumentation works at the refinery. This contract is a continuation of the development work on the Eneabba project.
Iluka Scores Rare Earth Supply Deal
Iluka confirmed it has signed a binding agreement to supply magnet rare earth oxides to an undisclosed global automotive company. It agreed on an initial four year deal, which is approximately 10% of Iluka’s expected production. The firm is predicting revenue from the deal to be between a minimum of $155 million and as high as $172 million, given industry price forecasts.
Source: Reuters
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