Tronox Holdings plc (Stamford, Conn.) announced it has received coordinated, non-binding and conditional Letters of Support/Interest (LS; LI; or combined, the Letters) from Export Finance Australia (EFA) and Export-Import Bank of the United States (EXIM), respectively, for up to $600 million in limited or non-recourse financing to support the development of Tronox’s rare-earth supply chain, including mine extensions, infrastructure support and cracking and leaching capacity. The coordinated Letters from EXIM and EFA are part of the agencies’ work under the United States–Australia Framework for Securing of Supply in the Mining and Processing of Critical Minerals and Rare Earths announced in October of this year.
The Letters represent a demonstration of interest in working with Tronox as it seeks to utilize the Company’s existing mining and processing capabilities to build out a rare earth elements supply chain. Tronox recently completed a pre-feasibility study and is now progressing to a definitive feasibility study for a proposed cracking and leaching facility in Western Australia to produce a mixed rare earth carbonate including both light and heavy rare earths. Tronox will now be working with downstream customers and other key business partners to develop a financeable project structure consistent with its long-term capital allocation priorities.
Tronox’s Chief Executive Officer John D. Romano commented, “This announcement represents a significant milestone in advancing the expansion of Tronox’s minerals processing operations to produce rare earth elements for customers that are critical to permanent magnet, defense, energy, and advanced technology industries. While Tronox currently mines and sells tailings materials containing rare earth elements, the Letters from EFA and EXIM highlight the opportunity for Tronox to assume a leading role as a supplier of rare earth elements to support the critical mineral strategies of Australia and the United States. We appreciate the support of EFA, EXIM Bank, and the Governments of Australia and the United States in this next phase of our rare earths journey.”
EFA Managing Director and Chief Executive Officer John Hopkins said, “EFA is pleased to provide a non-binding and conditional Letter of Support for this project, which aligns with our mandate to support the development of Australia’s critical minerals sector. This support is part of our engagement with our counterparts at EXIM under the Single Point of Entry framework and United States–Australia Framework for Securing of Supply in the Mining and Processing of Critical Minerals and Rare Earths. We look forward to continuing discussions as the project progresses.”
The EFA LS is subject to the satisfactory completion of customary due diligence, including environmental, social and financial assessments, as well as credit, risk and legal requirements and approvals, and compliance with applicable laws and regulations.
The EXIM LI is a non-binding indication of EXIM’s general interest in a proposed transaction or project and provides indicative general financing terms that EXIM is prepared to consider based on a limited review of the transaction/project.