Australian mining firm Alkane Resources is moving closer towards the development of its Dubbo project in New South Wales (NSW) after receiving Export Finance Australia’s (EFA) interest in financing the project.
The Dubbo mine is a proposed open-cut mine located near Toongi village, which is about 25km south of Dubbo, NSW.
Covering an area of approximately 45ha, the project will recover resources such as zirconium, hafnium, niobium, tantalum, yttrium and rare earth elements. It is projected to have a mine life of over 75 years.
According to Alkane, EFA’s financial support is subject to finalisation of due diligence, acceptable financing structure and other eligibility and credit requirements.
Alkane managing director Nic Earner said: “After extensive engagement with the Australian Government, particularly recently as part of its Critical Minerals initiative, it is pleasing to see that stated support is translating into preparedness for government agencies to act, in this case with EFA providing confirmation of its interest in being part of the financing consortium for the Dubbo project.”
With the confirmed financing support from EFA, Alkane subsidiary Australian Strategic Materials will now seek to engage with other interested parties to find more potential investors and offtake parties that would assist in the project development.
Australian Strategic Materials managing director David Woodall said “It is very pleasing to see positive action by EFA.
“It is very clear in today’s world that security of supply chains in all manner of materials is a pressing issue, and security of Critical Minerals is one supply chain that the Australian Government is clearly identifying as a priority for government backing.”
In March 2016, Alkane Resources subsidiary Australian Zirconia secured an environmental protection licence (EPL) from the state’s Environment Protection Authority (EPA) for Dubbo.