US-based critical mineral company Energy Fuels has received conditional credit approval for up to A$180m ($126m) in government-backed financing to support Phase 1 of the Donald Rare Earth and Mineral Sands Project in Australia.
Export Finance Australia (EFA) has conditionally approved up to A$70m, while the National Reconstruction Fund Corporation (NRFC) has conditionally approved up to A$110m.
The companies envisage these loans forming part of a proposed A$200m senior project finance debt facility, with A$20m expected from commercial lenders.
The loans are expected to have a term of ten years from financial close, with interest calculated at the Bank Bill Swap Bid Rate (BBSY) plus an additional margin.
Energy Fuels president and CEO Ross Bhappu said: “This financing milestone brings the Donald Project closer to an FID and strengthens the upstream foundation of our leading rare earth mine-to-magnet platform.
“Donald is expected to provide a large-scale, long-term source of monazite and xenotime sand feedstock, further distinguishing Energy Fuels as we develop a vertically integrated, Western-aligned supply chain for rare earth permanent magnets.”
Energy Fuels is developing the permitted project with Australian company Astron through a joint venture (JV).
The project is located in Victoria, about 300km northwest of Melbourne.
The proposed financing would cover Phase 1 development, construction and commissioning, as well as financing and operating costs during ramp-up through project completion.
The conditional approvals are intended to advance the financing package ahead of Energy Fuels’ targeted final investment decision (FID) by the end of 2026.
Discussions over the remaining commercial term loan and bank guarantee facilities are progressing.
Phase 1 is expected to produce an average of 9,000 tonnes per annum (tpa) of rare earth element concentrate (REEC) and 225,000tpa of heavy mineral concentrate (HMC).
The resource is projected to sustain operations for 40 years.
Under the joint venture arrangements, Energy Fuels will purchase all REEC for processing into oxides and subsequent downstream manufacturing.
This material, containing monazite and xenotime with neodymium-praseodymium, terbium, and dysprosium content, is earmarked for processing at the company’s White Mesa Mill in Utah, US.
Astron expects to purchase all HMC available for sale to customers globally.
Energy Fuels is working to secure a 49% stake in the JV by investing up to A$183m in up-front equity.
In June 2026, the company signed a definitive agreement to acquire 100% of the VAC facility from Ara Partners for nearly $1.9bn in a cash-and-stock transaction.
