Iluka Resources is planning to build a $1.2-billion rare earths refinery as part of the next growth phase of its Eneabba operations, recently announcing a final investment decision.
The refinery will produce the high value rare earth oxides neodymium, praseodymium, dysprosium, and terbium, while helping to diversify the local economy and create job opportunities for Western Australians.
These are critical inputs across a range of industries and technologies, including electric vehicles, sustainable energy, advanced electronics, medical, and defence applications.
The Federal Government will contribute up to $1.05 billion through a low-cost loan to build the project, which is expected to produce up to 17,500 tonnes of rare earth oxides a year, with first production due in 2025.
Iluka managing director Tom O’Leary said the company had been progressing its diversification into rare earths based on its at Eneabba and Wimmera in Victoria for several years.
He added: “Since 2019 we have adapted, accelerated, and amplified these plans in the context of key external developments, notably the continued transition towards the electrification of the global economy and the increasing policy priority assigned to critical minerals and their supply chains by the Australian government.
“Rare earths are among the key building blocks of an electrified economy and our final investment decision for phase three will see Eneabba become a strategic hub for the downstream processing of Australia’s rare earth resources.
“The refinery has been designed specifically to have the capacity to be globally material, the capability to process both Iluka’s 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.”
Construction on Iluka’s project is due to start in the second half of this year, creating 300 jobs during the building phase and 270 once operational.
Chamber of Minerals and Energy chief executive Paul Everingham said Western Australia was known for its abundance of lithium, cobalt and rare earths, which were all helping to transition Australia to a lower carbon economy.
He said Western Australia had the opportunity to become a major supplier of the critical minerals that are needed in smartphones, electric vehicles, solar panels, wind turbines and vital components in military technology.
Everingham said: “With the shift to cleaner energy sources, there is growing global demand for minerals used in the technologies that help save energy and assist in the production of lower emission and renewable energy.
“The drive to reduce the world’s dependence upon fossil fuels and decrease carbon emissions, coupled with the growing demand for technology that is faster, smaller and more efficient, is expected to foster significant growth in the rare earths market in the coming decade.
“In light of the projected strong growth in demand for products utilising rare earths and the focus from the US, the EU and other key markets on sourcing reliable supplies of these critical minerals, WA is in the box seat to continue to emerge as a global supplier of choice.”
In late 2019, a formal partnership was signed between Australia and the United States on developing both nations’ critical mineral assets.
The Federal Government has also established a dedicated office within the Department of Industry to help support critical minerals projects.