Two major Australian government financing institutions have committed A$180-million, or $126-million, in project finance debt facilities for TSX- and NYSE-listed rare earths developer Energy Fuels' Donald rare earths and mineral sands project in Australia.

The funding will support the Phase 1 construction of the project.

Energy Fuels also secured a conditional $725-million loan commitment from the US Office of Strategic Capital in June for expansion of the company's rare earths processing, separation, metal and alloy capacity in the US.

The Australian financing represents a major milestone toward bringing the company's first large-scale rare earths resource into production, with a final investment decision on the Donald project targeted before the end of the year.

The Donald project will serve as a key upstream component in Energy Fuels' emerging mine-to-magnet supply chain, providing rare earths mineral feedstock to the company's existing and planned rare earths processing facilities, including the White Mesa Mill in Utah.

"Donald is expected to provide a large-scale, long-term source of monazite and xenotime sand feedstock, which further distinguishes Energy Fuels as we develop a vertically integrated, Western-aligned supply chain for rare earth permanent magnets," says Energy Fuels CEO and president Ross Bhappu.

Donald is being developed as a joint venture (JV) between Energy Fuels and Australia-based Astron.

Under the project's Phase 1 development, it will produce 9 000 t/y of rare earth element (REE) concentrate and 225 000 t/y of heavy mineral concentrate.

Energy Fuels will purchase all of the rare earth concentrate products for processing into rare earth oxides and downstream manufacturing of metals, alloys and permanent magnets, whereas Astron will purchase all of the heavy mineral concentrate from the JV for sale to global customers.

Energy Fuels plans to have the White Mesa Mill produce about 1 000 t/y of neodymium and praseodymium oxide, as well as 21 t/y of terbium and 122 t/y of dysprosium oxides. The mill currently has the capacity to process up to 10 000 t/y of REE concentrate.

In turn, the oxides produced at the mill will be converted into metals and alloys at Energy Fuels' operating Korean Metals Plant in South Korea and the planned American Metals Plant, both of which were added to Energy Fuels' portfolio in August through its acquisition of Australian Strategic Materials.

Korean Metals Plant currently has the capacity to produce 1 300 t/y of neodymium-iron-boron alloy, with a planned expansion to 3 600 t/y underway. The Donald project will supply about 75% of Korean Metals Plant's expanded neodymium-iron-boron capacity.

The alloy produced at Korean Metals Plant, and at the American Metals Plant once operational, will supply magnet manufacturing facilities owned by Vacuumschmelze, in Germany and Finland. Energy Fuels is currently in the process of acquiring Vacuumschmelze, with closing expected in the first quarter next year.

Vacuumschmelze currently has the capacity to produce 2 500 t/y of neodymium-iron-boron magnet block.

Energy Fuels plans to develop additional mineral projects such as Vara Mada and Bahia, in Madagascar and Brazil, respectively, as additional sources of feedstock for all its plants, while it will also purchase third-party feedstock such as mixed rare earth carbonates if needed.