#Australia #Energy Fuels #Rare Earths #Donald Project #Wimmera

Energy Fuels' Donald Project Receives Major Regulatory Approval

Energy Fuels Inc., a prominent player in the U.S. uranium and rare earth element sector, recently announced that it has obtained the final major regulatory approval from the Government of Victoria for the construction and operation of its Donald Rare Earth and Mineral Sand Project. This significant step is crucial as it paves the way for the next phase of the project in the Wimmera region of Australia.

Project Overview

The Donald Project is a joint venture between Energy Fuels and Australia's Astron Corporation, combining resources to focus on extracting and processing some of the world's most sought-after rare earth minerals. Energy Fuels intends to process these elements into various oxides, including light, mid, and heavy rare earth oxides, at its White Mesa Mill located in Utah.

Mark S. Chalmers, President and CEO of Energy Fuels, remarked that the approval is an important milestone that enhances the collaboration between the USA and Australia, particularly concerning the supply of critical minerals. He emphasized the project's potential in addressing the growing demand for rare earth elements (REEs), which are essential for a range of technologies in clean energy and defense sectors.

Financial Structure and Anticipated Production

Under the terms of the joint venture, Energy Fuels has the right to invest up to AU$183 million (approximately US$119 million) and release US$17.5 million in common shares to earn a 49% ownership stake. The venture aims to secure a long-term, cost-effective supply of REE mineral concentrate, primarily monazite and xenotime, which the company plans to import to the U.S. for further processing.

Once operational, the Donald Project is expected to yield about 7,000 to 8,000 metric tons of REE concentrate annually in its initial phase, which may begin as soon as 2026. Notably, this output includes significant quantities of critical oxides such as neodymium and praseodymium (NdPr), dysprosium (Dy), and terbium (Tb).

The processing capacity at the White Mesa Mill has been designed to accommodate the initial phase of the Donald Project, ensuring that Energy Fuels is well-equipped to convert the rare earth materials into high-purity products for various commercial applications.

Future Developments

Upon successful commencement of Phase 1, Energy Fuels and Astron are already considering an expansion to Phase 2 of the project, which could potentially allow production capacity to increase to 13,000 – 14,000 tonnes of REE concentrate each year. This expansion would provide a consistent supply of REE feedstock for decades, meeting the growing global demand for these resources.

Further, Energy Fuels aims to enhance the processing capacity at its mill to handle up to 60,000 tonnes of REE concentrate annually, with the target to produce around 6,000 tonnes of separated NdPr along with significant amounts of other REE oxides.

Conclusion

With the final major regulatory hurdles cleared, the Donald Project stands as one of the most promising near-term sources of rare earth elements, critical for a waterproof supply chain in the U.S. Energy Fuels and Astron's partnership heralds a new chapter for the rare earth market, aiming to deliver reliable supplies that bolster both commercial interests and defense capabilities. The firm anticipates announcing a final investment decision by the end of 2025, enabling construction to kick off soon after.

As the world continues to pivot towards clean energy technologies and defenses, the success of the Donald Project will play an integral role in defining the future of rare earth production in the United States and beyond.