Iluka Resources is partnering with the Federal Government to deliver its Eneabba rare earths refinery in Western Australia.
The partnership aligns with the government’s ‘Future Made in Australia’ agenda, supporting the achievement of policy objectives related to supply chain resilience and facilitating an Australian rare earths industry.
Iluka concluded the refinery’s front-end engineering and design back in December 2023, announcing an increase in the capital cost to $1.7–1.8 billion.
This funding gap has been the topic of discussion between Iluka and the Federal Government throughout 2024.
Now, the Federal Government has agreed to contribute an additional $400 million, with Iluka contributing another $214 million cash equity.
The funding is conditional to securing offtake agreements the Federal Government deems satisfactory and delivering positive outcomes in line with the Future Made in Australia plan.
“We expect the Eneabba refinery to deliver substantial, sustainable value over several decades – that is why Iluka is investing significant shareholder funds in this opportunity,” Iluka managing director Tom O’Leary said.
“This is a strategic infrastructure asset that puts Iluka and Australia at the forefront of global electrification, the creation of new and resilient critical minerals supply chains, and the establishment of a rare earths industry that is genuinely independent.”
O’Leary thanked the Federal Government for its support in developing a “globally important” project.
“With the capital structure for Eneabba now confirmed, we remain focused on efficient construction of the refinery, and on realising the operational performance, pricing outcomes and longevity that will collectively drive returns from our rare earths business,” he said.
“I look forward to providing shareholders a broader update on these matters at Iluka’s full year results in February 2025.”
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