Kalgoorlie Nickel, a joint venture (JV) project under Ardea Resources, has secured potential financial backing totalling approximately A$1bn ($701.3m) for the Goongarrie Hub Project in Western Australia (WA).
Both Export Finance Australia (EFA) and the Export-Import Bank of the US (EXIM) have expressed interest in supporting the project’s development through non-binding and conditional letters.
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The EFA’s letter of support suggests potential funding of A$500m, while EXIM’s letter of interest indicates possible support amounting to $350m.
This support underscores the Goongarrie Hub’s importance in developing critical mineral supply chains that cater to sectors such as battery production, energy storage and electric vehicles (EVs).
The Goongarrie Hub, situated 70km north of Kalgoorlie-Boulder, is recognised as a key nickel-cobalt resource.
It is poised to meet rising demand in both traditional markets like stainless steel manufacturing and emerging sectors requiring high-purity nickel for battery cathode production, driven by the growth of EVs.
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By GlobalDataThe EFA’s support remains contingent on meeting various eligibility criteria including due diligence processes covering environmental, social and financial aspects, as well as legal approvals.
EFA managing director and CEO John Hopkins said: “EFA is pleased to provide a non-binding and conditional letter of support to Kalgoorlie Nickel, which aligns with our mandate to support the development of Australia’s critical minerals sector.
“This support has been the result of engagement under the Single Point of Entry [SPE] and directly supports the US-Australia Framework for Securing of Supply in the Mining and Processing of Critical Minerals and Rare Earths. We look forward to continuing discussions as the project progresses.”
Concurrently, EXIM’s interest falls under its Supply Chain Resiliency Initiative (SCRI), aimed at bolstering supply chain resilience.
The collaboration between the EFA and EXIM via the SPE mechanism aims to streamline engagement for critical mineral projects like Goongarrie Hub, facilitating coordinated agency support.
This initiative helps businesses secure quicker referrals and joint financing arrangements, serving the strategic objectives of both nations concerning critical minerals and economic security.
