ASM receives backing from EDC for Dubbo rare earths project

Australian Strategic Materials (ASM) has secured a non-binding and conditional letter of interest (LOI) from Export Development Canada (EDC) for a debt funding package of up to A$400m ($261.6m) to support the Dubbo rare earths and critical minerals project in New South Wales, Australia.

The alignment of policies between Australia and North American jurisdictions on critical minerals has played a significant role in attracting interest from EDC. This follows previous financial backing from Export Finance Australia (EFA) and a commitment from the Export-Import Bank of the US.

EDC’s support is contingent on due diligence and internal approvals, with the LOI set to expire in 2025. The involvement of EDC also opens up opportunities for Canadian companies to provide equipment and services for the Dubbo Project.

ASM is actively engaging with other export credit agencies and commercial banks to secure additional funding for the project. The company’s CEO, Rowena Smith, expressed excitement about the support received, emphasizing the strategic partnerships being built in North America.

The financial backing from EDC underscores the confidence in the Dubbo Project and its potential as a reliable source of critical minerals. ASM continues to work towards securing additional support and will provide updates as new developments unfold. The momentum in financial support reflects the growing recognition of the project’s strength and significance in the critical minerals market.