The Northern Australia Infrastructure Facility has supported its first gold project while also agreeing to increase its concessional loan to a rare earths project in WA.
The Northern Australia Infrastructure Facility has supported its first gold project while also agreeing to increase its concessional loan to a rare earths project in WA.
NAIF is a development financer for infrastructure projects in Northern Australia, with public benefits.
The Australian Government initiative has committed $3.9 billion to infrastructure projects since it was established in 2016.
Today’s announcement marks the first time NAIF has supported a gold project after Queensland-based mining technology company Heritage Minerals secured a $66 million loan to rehabilitate an abandoned gold mine.
Heritage Minerals will use the loan to build a tailings processing plant and associated infrastructure to rehabilitate the Mount Morgan mine in Central Queensland, which has been closed since 1990.
The proposed mine will treat two million tonnes of tailings per year and create 250 construction jobs and 150 operations roles.
The loan will also be used to build a new water treatment plant to improve water quality in the Dee River.
A spokesperson for Federal Resources Minister and Minister for Northern Australia Madeleine King said this was the first gold project to be supported by NAIF.
“The Mount Morgan project is a gold tailings re-treatment project, and NAIF is financing a funding gap,” the spokesperson said.
“The Queensland Government is also providing funding to the project.
“The Mount Morgan project will generate local jobs, regional economic activity, business for local suppliers and Indigenous employment opportunities.”
Meanwhile, Perth-based rare earths company Hastings Technology Metals has secured a NAIF loan of $220 million for its Yangibana rare earths project north-east of Carnarvon.
NAIF previously approved a loan of $140 million but increased the amount to $220 million to reflect rising costs and magnet rare earth prices.
The Yangibana project includes a mine with Neodymium and Praseodymium resources and a hydrometallurgical processing plant in the Pilbara.
The operation is expected to expand WA’s downstream processing capability of rare earth minerals through the production of 15,000 tonnes of mixed rare earth carbonate over the mine’s lifetime.
The project is expected to create 500 construction jobs and 150 operations roles.
State Development, Jobs and Trade Minister Roger Cook said the project would boost local employment, business opportunities, road updates and communication infrastructure.
“This project will create hundreds of jobs in the Gascoyne and Pilbara regions as well as generate significant financial returns for the WA economy,” he said.
“Importantly, it is a glimpse into the near future as WA develops a world-leading battery and critical minerals sector.
“This is using WA’s rare-earth minerals to build the technology to support the global shift towards decarbonisation.”
On the market, Hastings Technology Metals shares were down 0.27 per cent to trade at $3.69.
