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Australia has conditionally approved A$180 million ($126 million) in financing for an Astron (ASX: ATR) and Energy Fuels (TSX: EFR; NYSE-A: UUUU; ASX: EF2) rare earths project as the partners consider a construction decision by year-end.
The proposed debt for the Donald project in Victoria includes up to A$70 million from Export Finance Australia and A$110 million from the National Reconstruction Fund. The approvals form part of a proposed A$200-million debt package that would include A$20 million from commercial lenders, Energy Fuels said in a release on Monday.
“Donald’s heavy rare earth content, particularly dysprosium and terbium, is especially important,” Energy Fuels CEO Ross Bhappu said. “We expect Donald to provide a significant long-term source of rare earth feedstock for processing and separation at our White Mesa mill in Utah.”
The funding would help develop a source of light and heavy rare earths as Australia and the United States seek to diversify supplies of minerals used in magnets, electronics and defence equipment. Canberra announced the support a year after the countries signed a critical minerals framework.
First stage
Donald, about 300 km northwest of Melbourne, is expected to produce about 9,000 tonnes of rare earth concentrate and 225,000 tonnes of heavy mineral concentrate annually over its first five years.
The rare earth concentrate would contain monazite and xenotime, including neodymium, praseodymium, terbium and dysprosium. The heavy mineral concentrate would contain zircon and titanium dioxide minerals.
Colorado-based Energy Fuels plans to buy the rare earth concentrate for its Utah mill, while Astron expects to purchase the heavy mineral concentrate for sale to customers. Energy Fuels has been expanding its rare earth business alongside its uranium operations.
Shares in Astron closed 2.4% weaker at A60¢ apiece on Tuesday in Sydney, after gaining 6% to A61.5¢ on Monday. The company requested a trading halt on Tuesday morning before releasing the financing announcement at 12:45 p.m. local time.
The company was valued at A$258 million at Tuesday’s close. Its shares have traded between A38¢ and A97¢ over the past year.
Energy Fuels holds a 15% interest in the joint venture and is earning towards 49%. It has invested about A$60 million in the venture and must invest approximately another A$86 million and issue shares worth US$14 million to earn its full interest, the company said.
The proposed debt has a 10-year term from financial close and would fund construction, commissioning and operating costs during ramp-up, as well as financing costs, Energy Fuels said. Completion of the government-backed financing remains subject to due diligence, final documentation and approvals, and the balance of the required debt funding from commercial lenders.
Tantalum loan
The Australian government separately announced conditional approval for a US$41.4-million loan to Global Advanced Metals to support tantalum production. Tantalum is used in electronic capacitors, aerospace alloys and medical implants, ministers said in a joint statement on Tuesday.
More than A$6 billion in support for critical minerals projects has been announced since the Australia-U.S. agreement was signed in October 2025, the government said.