PERTH (miningweekly.com) – The Northern Australian Infrastructure Fund (NAIF) has approved a A$140-million investment into the construction of ASX-listed Hastings Technology Metals’ Yangibana rare earths project, in Western Australia.

The one-million-tonne-a-year Yangibana operation is expected to produce 15 000 t/y of mixed rare earths carbonate, and about 8 850 t/y of total rare-earth oxides, with Hastings previously estimating a capital spend of A$517-million to bring the project online.

Project construction is scheduled to start in mid-2022, ahead of a 24-month construction period.

Hastings on Wednesday said that the NAIF loan would form part of a A$300-million to A$400-million debt financing required for the construction of the Hastings project, which would create up to 750 jobs, more than A$1.25-billion in public benefit and support Australia’s growing critical minerals sector.

“Hastings is delighted to have received the federal government’s support, through the NAIF, for the Yangibana rare earths project. This is the Commonwealth’s first project financing package for the construction of a rare earths mine and production plant in Australia and supports the rapid development worldwide of decarbonisation technologies in e-mobility and energy,” said Hastings executive chairperson Charles Lew.

“In view of the UN Climate Change Conference (COP26) held in November 2021, Hastings is proud to be at the forefront of this significant global transition to a lower-carbon future and aims to be a part of the global efforts towards sustainability.
 
“The commitment by NAIF will enable Hastings to finalise the funding requirements for Yangibana’s development and move into full-scale construction throughout 2022, with the objective of delivering first production by 2024. Yangibana is an amazing rare earths opportunity that will supply the world’s highest composition neodymium and praseodymium concentrate to Tier 1 customers in Europe and Asia.

“This is an exciting time not just for Hastings but for Australia’s emerging rare earths sector. We look forward to finalising the funding arrangements that will enable the Hastings board to make a final investment decision in the coming months.”

Minister for Agriculture and Northern Australia David Littleproud said the approval of the NAIF loan was an example of the Australian government supporting businesses to make sure important local projects were brought to reality.

“‘This project will help meet the growing global demand for critical minerals, supporting Australia’s position as a world-leading producer. It will make use of Northern Australia’s rich resources, strengthening key local industries and export markets to provide a real boon to our economy now and well into the future.”

Minister for Defence Industry, Minister for Science and Technology Melissa Price said the government’s financial support for this project would unlock game-changing benefits, particularly for employment and business opportunities in the Gascoyne, Carnarvon and Meekatharra regions.

“This project will support a range of new employment and business opportunities in the area, including for Indigenous communities. It has never been more vital to back local jobs and economic stimulus, which is why we are continuing to finance projects like this right across our North through the NAIF.”

NAIF acting CEO Amanda Copping said NAIF had a strong track record in supporting projects that bought economic growth to Northern Australia.

“The NAIF has already committed over A$3.2-billion to finance projects with an estimated total capital value of A$6.6-billion and support for over 11 000 jobs.

“The NAIF will continue to be one of the government’s critical levers to drive economic development and jobs in our North, and we are pleased that this latest loan will help do exactly that for the Gascoyne and surrounding regions.”