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Northern Minerals Receives US-Australian Backing for Browns Ridge Rare Earths Project

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By Colin Hay - 
Northern Minerals ASX NTU US-Australian Backing Browns Ridge Rare Earths Project
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Northern Minerals (ASX: NTU) has received letters of support from key Australian and US government agencies for its Browns Range heavy rare earth element (HREE) project in Western Australia following yesterday’s $1.5 billion agreement between Donald Trump and Anthony Albanese.

The Export-Import Bank of the United States (EXIM) has stated that it may consider financing the company’s Browns Range project in co-operation with Australia’s Export Finance Australia (EFA) agency for as much as A$350 million.

Northern Minerals has confirmed that it would seek any additional funding directly from EFA and the Northern Australia Infrastructure Facility (NAIF).

Growing Global Interest

The growing international interest in Browns Range follows last month’s release of a definitive feasibility study (DFS) that highlighted the project as a near-development source of dysprosium and terbium (Dy/Tb), two of the most critical HREE required for high-performance permanent magnets.

The DFS also noted that the project’s Wolverine HREE deposit contains one of the highest known proportions of Dy/Tb among rare earth element deposits outside of China, forecasting the project could produce approximately eight per cent of the current global Dy/Tb supply.

Northern Minerals executive chair Adam Handley said the landmark agreement is an important move that will accelerate the development of Australia’s rare earths supply chain.

“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 West’s efforts to move away from a single source of HRE,” he said.

Non-Chinese Supply

Chief executive officer Shane Hartwig said the support from the two agencies highlighted the commitment of Australia and the US to assist development of new, non-Chinese supply chains of critical minerals such as dysprosium and terbium.

“The demand for Dy/Tb in highly specialised and strategic defence technologies underpins the need for new sources of supply,” he said.

“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 our vision to deliver long-term, sustained value for our shareholders.”