The Donald Project, a joint venture (JV) between Energy Fuels and Astron, has been granted a conditional and non-binding letter of support from Export Finance Australia (EFA) for senior debt project financing of up to A$80m.
The total funding requirement for the rare earth and mineral sands project is estimated to be around A$520m.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The EFA’s letter is contingent upon satisfactory due diligence outcomes and regulatory approvals.
The Donald Project JV, aiming for a 50% debt-to-equity ratio, is also collaborating with export credit agencies and senior lenders to establish the financing syndicate.
As Australia’s export credit agency, the EFA plays a vital role in facilitating export trade and infrastructure development overseas.
Located in Victoria’s Murray Basin near Minyip and Donald, the Donald Project promises to be a major contributor to the global supply chain of rare earth elements (REEs), with its production directed towards Energy Fuels’ processing facility in the US.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe project’s development is expected to enhance supply chain resilience for Western nations and partners, with all its rare earth element concentrate (REEC) under a life-of-mine offtake agreement with Energy Fuels.
Production is scheduled to begin as early as the second half of 2027, contingent upon obtaining project financing and a favourable final investment decision (FID) for the project.
Upon commencement, the project’s first phase is expected to yield an average of 7,200 tonnes per annum (tpa) of REEC.
This includes both light and critically important heavy rare earths, with annual outputs of up to 1,000 tonnes (t) of neodymium-praseodymium (NdPr) oxides, 92t of dysprosium (Dy) oxide and 16t of terbium (Tb) oxides.
These outputs are projected to meet a significant portion of US demand for Dy and Tb, which is essential for clean energy, defence and advanced manufacturing sectors.
Astron managing director Tiger Brown said: “The conditional and non-binding Letter of Support from EFA highlights the strategic role the project plays in the diversification of critical mineral supply chains. It marks a key milestone in our pathway to development of the Donald Project and the tangible progress we are making toward establishing a world-class rare earth operation in Australia.”
Alongside the EFA’s potential A$80m contribution, the JV is also in discussions with other export credit agencies and commercial lenders to form a comprehensive project financing syndicate.
Energy Fuels intends to invest up to A$183m in equity, divided into A$45m before the FID and A$138m after the FID.
Furthermore, additional post-FID contributions totalling A$122m will be distributed proportionally among the partners.
Energy Fuels CEO Mark Chalmers said: “The conditional and non-binding Letter of Support from EFA is a strong vote of confidence for the Donald Project and its role in supporting global critical minerals supply chains.
“This is a key additional step in our financing pathway and reflects our ongoing progress toward delivering one of Australia’s most important rare earth projects, including valuable NdPr, and exceptional concentrations of Dy, Tb and other ‘heavy’ rare earth oxides, which upon project development will be processed and separated into high-purity products at our White Mesa Mill in Utah.”
Astron continues to work with ICA Partners to secure additional debt funding for the project.
