Allens has advised Iluka Resources, one of the world’s leading mineral sands producers, on its entry into a risk sharing arrangement under the Australian Government’s $2 billion Critical Minerals Facility, administered by Export Finance Australia.
The government’s funding comprises a $1.05 billion non-recourse loan provided to a subsidiary of Iluka Resources to fund the construction and commissioning of the Eneabba Rare Earths Refinery in Eneabba, Western Australia, plus a further $200 million cost overrun facility if required.
‘We are grateful to have this opportunity to assist Iluka with this significant milestone in the development of its critical minerals business, and Australia’s first fully integrated rare earths refinery,’ said Partner .
The Eneabba Refinery will strengthen Australia’s participation in the global critical minerals supply chain while creating jobs and opportunities in Western Australia.
‘Energy transition is an underlying theme for much of the transactional activity we are seeing across the firm and we are pleased to play a role in the further development of the magnet supply chain in Australia,’ Farnsworth added.
The Eneabba Rare Earths Refinery is the next step in Iluka’s diversification into rare earths, recognising the increasing global need for rare earth resources. Rare earth products have applications in electric vehicles, sustainable energy and advanced electronics, as well as in the medical and defence industry.
