Australian government supports Eneabba rare earth smelter in ILuca

If implemented, the Eneabba refinery will be able to handle some third-party rare earth concentrates.

(Iluka) previously disclosed that it was conducting a feasibility study to develop a fully integrated rare earth refinery in Eneabba, Western Australia. The company also said it was in extensive contact with the Australian government on this development.

On May 10, 2021, Iluka received a letter from Dan Taihan, Minister of Trade, Tourism and Investment, and Keith Pitt, MP, Minister of Resources, Water Resources and North of Australia. This letter is attached to this announcement and points out that:

The Eneabba development project proposed by ILuca is broadly in line with the key mineral policy objectives of the Australian government.

The establishment of domestic rare earth oxide production capacity will greatly promote Australia's further development in the rare earth value chain, create regional jobs and derive more economic benefits from Australia's resources. and establish security in the global supply of key minerals;

ILuca is discussing with the Australian Export Finance Corporation the provision of financial support for the project, including the search for non-recourse loan arrangements;

Under the premise of a commercial agreement, in addition to Iluca's own monazite, the Eneabba refinery will be able to process some third-party rare earth concentrates;

The Australian government will continue to work with supporters of key mineral and rare earth projects, including those that can supply concentrates to the Eneabba refinery, to consider supporting options

After receiving the letter, Iluka General Manager Tom O'Leary said: "as I outlined at Iluka's annual general meeting in April, the Eneabba refinery is an exciting opportunity for the company, which is in line with our long-standing rare earth diversification plan. This is not a risk-free opportunity, nor is it an opportunity that we will pursue at any cost, especially given the expected return on our second phase of our monolithic business. This is the focus of our discussion with the Australian Government and the potential for coordination between business and policy objectives. I am impressed by the quality of Iluka's contacts on these issues and the letters from Ministers Pitt and Tehan are further important and confidence-building steps in this regard. Shareholders can rest assured that Iluka is making the same progress in this part of its business as we do elsewhere. We look forward to continuing our contacts with EFA and the key Minerals Promotion Office to advance the development of Eneabba. "