Hastings Technology Metals (ASX: HAS) has secured a $140 million, 12½-year tenor loan facility from the Federal Government’s Northern Australia Infrastructure Facility (NAIF) for the development of its Yangibana Rare Earths Project in Western Australia.
The company notes that the NAIF loan forms a crucial part of the $300-400 million of total debt funding required for construction of the project. Once complete, Yangibana will become Australia’s second rare earths producer and expands the country’s strategic capability in downstream processing of rare earths minerals.
Commenting on the loan approval, Hastings Technology Metals Executive Chairman Charles Lew said: “Hastings is delighted to have received the Federal Government’s support, through the Northern Australia Infrastructure Facility, for the Yangibana rare earths project. This is the Commonwealth’s first project financing package for the construction of a rare earth mine and production plant in Australia and supports the rapid development worldwide of decarbonisation technologies in e-mobility and energy. 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.
“This is the Commonwealth’s first project financing package for the construction of a rare earth mine and production plant in Australia”
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 added: “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.”
Yangibana is a significant Australian rare earths project, containing ‘substantial’ neodymium and praseodymium resources. The 650km² project is situated approximately 250km north east of Carnarvon, and once developed will comprise a mine and beneficiation plant, along with a hydrometallurgical plant at the Ashburton North Strategic Industrial Area near Onslow. Early works construction and design for long-lead items are underway in anticipation of plant construction commencing in Q3 2022.
The NAIF loan is aligned with Australia’s Critical Minerals Strategy along with the Western Australian Government’s Future Battery Industry Strategy. Construction of the project is expected to create up to 750 jobs, and more than $1.25 billion in public benefit.
First drawdown is expected to occur in early 2023, aligned to the Yangibana funding schedule. The company notes that loan documentation and normal conditions precedent for a loan of this nature will need to be met before accessing finance.
Images: Hastings Technology Metals Ltd
