The United States will allocate $786 million to Australian projects related to critical minerals

The Export-Import Bank of the United States (EXIM) has offered debt financing of $786 million to support two Australian companies in developing critical mineral supply chains, which are essential for the future of technology and sustainable energy.

Support for American Rare Earths

One of the beneficiaries of the support is American Rare Earths, a company focused on critical materials. On September 24, the company announced that it had received a letter of intent from EXIM offering financing of $456 million. The funds will be used to construct and operate the Cowboy State Mine in Halleck Creek, Wyoming.

Melissa Sanderson, a board member of American Rare Earths, emphasized that the company hopes the EXIM support will attract additional private investment for the development of the project. The financing package, part of the “Make More In America” initiative, includes a 15-year repayment period.

Investments in Lithium Production

On the same day, Australian company Anson Resources announced that EXIM had offered it $330 million to support the construction of a lithium production facility in Paradox Basin, Utah.

Bruce Richardson, CEO of Anson Resources, highlighted that the U.S. aims to develop independent sources of critical minerals, and Paradox, which could be the largest source of lithium in the U.S., will play a key role in this effort.

Competing with China

The projects supported by EXIM are part of broader efforts by the U.S. and Australia to reduce China’s global dominance in the critical minerals sector. China currently controls over 80% of the world’s supply of these minerals. Last year, the two countries established a task force on critical minerals, aiming to attract investment and support processing.

Source: mining-technology.com