First loans approved under A$2bn Critical Minerals Facility

2nd February 2022 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) – The first loans under the federal government’s Critical Minerals Facility have been conditionally approved.

The first loans under the government's recently established Critical Minerals Facility, worth a total of A$239-million, have been provided to ASX-listed EcoGraf and fellow-listed Renascor Resources. Minister for Trade, Tourism and Investment Dan Tehan said the projects would promote Australia as a trusted supplier of critical minerals to the world.

“The government's support for these projects through the A$2-billion Critical Minerals Facility is a clear demonstration of our faith in the potential of Australia's critical minerals sector,” Tehan said. “At a time of booming global demand for smartphones, electric vehicles and other technologies this commitment from the Australian government positions Australia strongly into the future in the critical minerals sector." Minister for Resources and Water Keith Pitt said the loans would pay long-term dividends to the national economy.

“The potential of the critical minerals sector is enormous and these loans will support two significant projects that will expand Australia's footprint and reputation in this rapidly growing industry,” Pitt said. “It will build on a resources sector that already provides over 365 000 direct jobs for Australians and is forecast to contribute a record $379-billion in exports this financial year.”

EcoGraf will be provided up to $40-million in funding from the Critical Minerals Facility to support its 20 000 t/y Australian battery anode material facility, which will be constructed in the Rockingham-Kwinana Strategic Industrial Area, and would use the company’s environmentally superior and cost-effective purification technology to produce high-quality battery anode material using natural flake graphite for export to Asia, Europe and North America.

The project was previously endorsed by the federal government, which awarded it Major Project status, and has been granted Lead Agency status by the state government.

The proposed loan is subject to a number of conditions relating to completion of all due diligence to the satisfaction of Export Finance Australia, the successful construction and commissioning of the initial 5 000 t/y facility and the execution of material agreements for the expansion construction, operations and sales arrangements.

Meanwhile, Renascor Resources has been conditionally approved for a A$185-million loan to fund the development of its Siviour graphite project, in South Australia.

The Sivour project, which was also previously granted Major Project status, includes a graphite mine and concentrator located in the Eyre Peninsula and a downstream purified spherical graphite manufacturing facility located in Port Adelaide.

The project is on track to become the first in-country integrated graphite mine and battery anode material operation outside of China, positioning Australia as an important participant in the global battery industry and electric vehicle markets.

“We are extremely pleased to have received conditional approval from the Australian government for this project-enabling loan facility, and to receive such approval under the Australian government’s A$2-billion Critical Minerals Facility,” said Renascor MD David Christensen. “The Siviour graphite project represents an important opportunity for Australia, and South Australia in particular, to develop a world-class, globally competitive downstream processing capability in a critical mineral that is fundamental to the development of the electric vehicle revolution. The support from the Australian government and Export Finance Australia is a significant and tangible endorsement of this opportunity and Renascor’s ambition to become a world-leading supplier of purified spherical graphite.”

The approval of the Renascor loan facility is subject to a number of conditions, including completion of all due diligence to the satisfaction of Export Finance Australia. Satisfaction of all conditions of approval, and completion of full form documentation, will coincide with a planned final investment decision in 2022.