Tronox has secured coordinated, conditional and non-binding support for up to $600m in rare earth supply chain financing from Export Finance Australia (EFA) and the Export-Import Bank of the United States (EXIM).
This joint support aims to advance Tronox’s development of a rare earth elements (REEs) supply chain encompassing mine extensions, infrastructure, and a proposed cracking and leaching facility in Western Australia (WA).
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The letters of support and interest from EFA and EXIM, respectively, are part of the agencies’ collaboration under the US-Australia “framework for securing the supply of mining and processing of critical minerals and rare earths”, announced in October this year.
Tronox CEO John D. Romano said: “This announcement represents a significant milestone in advancing the expansion of Tronox’s minerals processing operations to produce REEs for customers that are critical to permanent magnet, defence, energy and advanced technology industries.
“While Tronox currently mines and sells tailings materials containing REEs, the letters from EFA and EXIM highlight the opportunity for Tronox to assume a leading role as a supplier of REEs to support the critical mineral strategies of Australia and the US.
“We appreciate the support of EFA, EXIM Bank, and the governments of Australia and the US in this next phase of our rare earths journey.”
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By GlobalDataTronox said the coordinated approach underscores the agencies’ commitment in collaborating with the company as it utilises its mining and processing capabilities to develop an REE supply chain.
It recently completed a pre-feasibility study and is advancing with a definitive feasibility study for a cracking and leaching facility in WA.
The planned facility is expected to produce a mixed rare earth carbonate comprising both light and heavy REEs.
Tronox plans to establish a financially viable project structure aligned with its long-term capital allocation objectives.
The EFA letter of support is contingent upon the satisfactory completion of customary due diligence, which includes environmental, social and financial evaluations, as well as meeting credit, risk and legal requirements and obtaining necessary approvals, in addition to compliance with all relevant laws and regulations.
EFA managing director and CEO John Hopkins said: “EFA is pleased to provide a non-binding and conditional letter of support for this project, which aligns with our mandate to support the development of Australia’s critical minerals sector.
“This support is part of our engagement with our counterparts at EXIM under the Single Point of Entry framework and United States-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.”
The EXIM letter of interest is a non-binding expression of EXIM’s general interest in a proposed transaction or project.
It outlines indicative general financing terms that EXIM may be willing to consider based on a limited review of the transaction or project.
