Perth-based company Iluka Resources is set to build Australias first integrated rare earths refinery at Eneabba, Western Australia, following a final investment decision earlier this week.
The $1.2 billion project will produce high-value separated rare earth oxides (neodymium, dysprosium, praseodymium and terbium), critical to a range of technologies including electrical vehicles, clean energy generation, advanced electronics, and medical and defence applications.
April 4, 2022
Iluka Resources has announced the final investment decision on its $1.2 billion refinery with construction to start in the second half of 2022.
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Mineral sands major Iluka Resources (ASX: ILU) has announced board approval of its $1.2 billion Eneabba Phase 3 rare earths refinery in Western Australia with construction to start in the second half of the year.
The mining heavyweight made the highly anticipated final investment decision following the completion of a feasibility study and a risk-sharing agreement with the Australian Government, which includes a 16-year non-recourse loan totalling $1.05 billion.
The loan will come from the Critical Minerals Facility administered by the federal governments Exports Finance Australia. It also includes a $200 million cost overrun facility if required.
Iluka managing director Tom OLeary in a statement today described Eneabba Phase 3 as a defining opportunity for the company.
Our final investment decision for Phase 3 will see Eneabba become a strategic hub for the downstream processing of Australias rare earth resources, he said.
The refinery has been designed specifically to have the capacity to be globally material, the capability to process both Ilukas feedstocks and those held by third parties, and to have minimal environmental impact, including as a result of being located entirely on a brownfields site.
Mr OLeary added that the partnership with the Australian Government mitigates risk and provides a strong platform for Eneabbas success as a sustainable, secure and globally competitive source of separated rare earth oxides.
This is consistent with Ilukas disciplined approach to capital allocation and the development pathway we have been pursuing for some time, based on the alignment of commercial and policy objectives.
Rare earths refinery builds on existing Eneabba operation
Eneabba Phase 3 will be a fully integrated refinery for the production of separated rare earth oxides, with feedstock expected to be sourced both from Ilukas projects and a range of potential third party concentrate suppliers.
The high-value rare earth oxides to be produced at the refinery include neodymium, praseodymium, dysprosium and terbium, which are considered critical inputs for many industries and technologies such as electric vehicles, sustainable energy, advanced electronics, medical and defence applications.
Ilukas Eneabba project currently consists of its phase one screening and phase two concentration plant. Phase three will build on the operation to deliver a significant downstream infrastructure asset comprising roasting, leaching, purification, solvent extraction, and product finishing.
According to the completed feasibility, the refinery will have a total rare earth oxide capacity of 17,500 tonnes per annum.
