Australian heavy rare earths developer Northern Minerals Limited (ASX: NTU) has received non-binding and conditional letters of support from key Australian and US government agencies backing the financing and development of the company’s 100%-owned Browns Range Heavy Rare Earths Project, in the East Kimberley region of Western Australia.
The support from Australia’s Export Finance Australia (EFA) agency and the Export-Import Bank of the United States (EXIM) was received by the company following the Washington DC meeting overnight between Prime Minister Anthony Albanese and President Donald Trump, where the leaders reaffirmed a Australian and US desire to increase collaboration to advance the development of independent critical minerals including heavy rare earths such as those present at Browns Range.
Highlights
- NTU welcomes the signing by President Trump and Prime Minister Albanese of today’s landmark (multi-billion USD) Critical Minerals and Rare Earths agreement between Australia and the United States of America (Agreement).
- Cited by the White House as a “model for supply chain cooperation globally”, the Agreement contemplates the US and Australian government’s intention to invest more than US$1 billion together in critical mineral projects in the next six months with The Export-Import Bank of the United States (EXIM) issuing a number of Letters of Interest to advance critical minerals and supply-chain security projects between Australia and the US.
- Further to the leaders’ meeting and the Agreement, Export Finance Australia (EFA) and EXIM have provided a coordinated, conditional and non-binding Letter of Support and Letter of Interest outlining the provision of potential debt funding to support the development of Northern Minerals’ Browns Range Heavy Rare Earths Project.
- EXIM has outlined that it would be able to consider financing up to US$230 million, in cooperation with EFA under the EXIM–EFA Single Point of Entry. Any additional amount of funding will be sought direct from EFA as well as from the Northern Australia Infrastructure Facility (NAIF).
- EFA and EXIM Letters of Support and Interest respectively underpin the global significance of Browns Range and confidence in Northern Minerals’ ability to deliver the project as outlined in the Company’s recently released Definitive Feasibility Study (DFS).
- Browns Range is one of the most advanced pure-play Dysprosium, Terbium and Yttrium-rich heavy rare earths projects of scale outside of China and one of the most advanced in Australia, with first production (subject to funding) targeted from 2028 to meet a forecast global shortfall in Dysprosium and Terbium (Dy/Tb) supply.
- EFA and EXIM Letters of Support and Interest respectively reflect Browns Range’s potential to significantly aid the efforts of Australia and its partners to diversify supply of Dy/Tb, two critical minerals needed in clean energy technologies, advanced defence systems, medical applications and humanoid robotics.
- Northern Minerals’ DFS confirmed Browns Range’s capacity to produce ~8% of current global Dy/Tb supply, with potential for further exploration upside.
- Long-term, binding supply agreement in place with Iluka Resources (ASX: ILU) for the majority of Browns Range Dy/Tb-rich xenotime concentrate to be processed at Eneabba, where Iluka is constructing Australia’s first fully integrated rare earths refinery (with circa A$1.6 billion in funding support from the Australian Federal Government).
- Receipt of the EFA Letter of Support and EXIM Letter of Interest will further support Northern Minerals’ efforts to finalise funding for Browns Range ahead of a Final Investment Decision in accordance with the timetable previous announced to the market.
Commenting on the landmark agreement signed by the President and the Prime Minister, Northern Minerals executive chairman Adam Handley said:
“We applaud the resolve that the Australian Government, and particularly Prime Minister Albanese and Minister Madeleine King, have shown to reach this landmark agreement with the United States.
“It is a significant and timely step which will accelerate the development of Australia’s highly strategic rare earths supply chain and further bolster the Western world’s concerted efforts to develop independent critical minerals, including heavy rare earths, supply chains.
“The Washington agreement struck by the leaders will materially advance stakeholders’ understanding of and confidence in the capacity of Australia, including our Browns Range project, to materially contribute to the Western world’s accelerating and important efforts to move away from a single source of supply of heavy rare earths.”
Commenting on the non-binding support from the EFA and EXIM, Northern Minerals managing director Shane Hartwig said:
“We are delighted with and appreciative of the non-binding support from these two important government agencies, which underscores how committed Australia and the US are to assist development of new, non-Chinese supply chains of critical minerals such as Dysprosium and Terbium.
“Northern Minerals has recognised the potential for Browns Range to become a foundation block of a safe, secure and sustainable Australian rare earths supply chain. The Definitive Feasibility Study into Browns Range, completed just last month, confirms this globally significant opportunity.
“Browns Range is one of the most advanced HREE project in the world outside of China, ideally positioning Northern Minerals to capitalise on a forecast Dy/Tb supply deficit.
“The global push to decarbonise is undeniable and irreversible, reinforcing the strategic value of projects like Browns Range to supply the raw materials that will enable the energy transition. In addition, the demand for Dy/Tb in highly specialised and strategic defence technologies underpins the need for new sources of supply.
“Backed by these Letters from EFA and EXIM, our focus is to secure the right funding solution to enable a Final Investment Decision to be made and construction to start at Browns Range – in line with Northern Minerals’ vision to deliver long-term, sustained value for our shareholders.”
EFA managing director and CEO John Hopkins said:
“This is an example of how EFA and EXIM can work together to support projects of mutual strategic interest. The Single Point of Entry enables joint support for critical minerals supply chains, which are essential to both countries’ energy and manufacturing ambitions.”
EXIM’s chairman John Jovanovic added:
“EXIM’s Letter of Interest to Northern Minerals reflects our commitment to advancing projects that strengthen US national security, enhance supply chain resilience and revitalise domestic manufacturing.
“By fostering collaboration between American industry and Australian mining initiatives, EXIM is helping deliver on President Trump’s vision to bolster America’s industrial innovation, create high-quality US jobs and ensure reliable access to the critical minerals that power key American industries and technologies.”
