Australian Strategic Materials (ASM) is set to receive a $US600 million ($923 million) boost for its Dubbo rare earths project in New South Wales.
The funding comes in the form of a non-binding and conditional letter of interest from the Export-Import Bank of the United States (US EXIM), the official export credit agency of the US Federal Government.
ASM will use the cash injection for the construction and execution phase of the Dubbo rare earths and critical minerals project.
“The Dubbo project is a globally significant rare earths and critical minerals asset, well positioned to support the joint objective of Australia and the US to develop and expand reliable, responsible and secure global access to critical minerals,” ASM managing director and chief executive officer Rowena Smith said.
“We are delighted to receive this letter of interest from US EXIM following extensive collaboration with multiple government and industry stakeholders in the US and look forward to building on the relationships we have established in this jurisdiction.”
US EXIM’s support is linked to the potential US content, such as equipment, goods and services, to be supplied in the construction phase of Dubbo and the key strategic role the project can play in the critical minerals supply chain.
The letter of interest is subject to completion of due diligence by US EXIM and ASM obtaining all necessary approvals for Dubbo.
The funding is in addition to a $200 million letter of support previously received from Export Finance Australia (EFA).
Current funding for Dubbo’s construction now stands at $1.12 billion, with ASM hoping the letter of interest will drum up further financing from North America.
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