Australia to provide $550 mln for rare earths mine and refinery (updated)

Arafura Rare Earths

14/03/2024 24:57

(Adds details throughout, changes dateline to Melbourne)
       MELBOURNE, March 14 (Reuters) - Australia will provide
up to A$840 million ($550 million) for a combined rare earths
mine and refinery in the north of the country, to be operated by
mineral developer Arafura  ARU.AX , Prime Minister Anthony
Albanese said on Thursday. 
    The funding, mostly in government loans for what will be
Australia's third rare earths processing plant, is expected to
be matched by finance from international partners. 
    “We will deliver critical jobs and economic development in
the heart of the Territory and the north," Albanese said in a
statement. 
    Rare earths are used to make powerful magnets, and are an
essential component in renewable energy and defence
technologies. Electric vehicle motors, wind turbines, robotics
and mobile phones all rely on rare earths.
    China is the world's dominant producer of rare earths, and
Australia and its allies are attempting to diversify the global
supply chain after COVID-related snarls.     
    The funding includes loans of $325 million under the
government's Critical Minerals Facility (CMF), A$200 million
through the Northern Australia Infrastructure Facility (NAIF),
up to $75 million from Export Finance Australia and a further
A$30 million in grants under the Modern Manufacturing
Initiative. ($1 = 1.5088 Australian dollars)

 (Reporting by Melanie Burton; Editing by Jacqueline Wong and
Muralikumar Anantharaman)
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