US backs Australian rare earths project with $600 mln letter of interest (updated)

Australian Strategic Materials

20/03/2024 22:21

(Adds details throughout, dateline; new paragraphs 3-5)
       MELBOURNE, March 21 (Reuters) - Australian Strategic
Materials  ASM.AX  said on Thursday it has received a letter of
interest (LOI) for a debt funding package of up to $600 million
from the Export-Import Bank of the United States to support
construction of its Dubbo rare earths project. 
    If confirmed, this would be the first U.S. investment in
rare earths processing in Australia and comes as Western nations
build supply chains outside of China to produce magnets used in
sectors from windfarms to defence. 
    The Australian rare earths developer has plans to build out
its Dubbo rare earths mine and processing plant 400 kilometres
(250 miles) north west of Sydney for which it is seeking
customers and finance.
    It last year agreed to sell neodymium iron boron alloy from
its South Korean metals plant to U.S.-based rare-earth magnet
maker Noveon Magnetics Inc.
    Australia last week said it would provide up to A$840
million ($550 million) for a combined rare earths mine and
refinery in the country's Northern Territory, owned by Arafura
Rare Earths  ARU.AX .

 (Reporting by Ayushman Ojha and Melanie Burton in Mekbiyrne;
Editing by Krishna Chandra Eluri and Josie Kao)
 ((Ayushman.Ojha@thomsonreuters.com;))