Iluka Resources secures international client, unlocks $1.65b government loan
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The news: Iluka Resources has signed a multi-year agreement with a global automotive company for the supply of magnet rare earth oxides for an initial four-year term.
The context: The offtake agreement, commencing in 2028, amounts to approximately 10% of Iluka’s planned production over that period, comprising 1,200 tonnes of magnet rare earths oxides. The volume is in line with the commissioning and ramp up timeline for its Eneabba refinery, which is now over 50% complete.
The company’s minimum contract revenue is USD155 million ($221 million), however, assuming industry forecast pricing, Iluka’s revenue over the contract period would reach USD172 million.
In a separate release to the bourse, Export Finance Australia confirmed Iluka’s access to the full $1.65 billion non-recourse loan provided by the government to construct the refinery, with commissioning scheduled for mid-2027.
What they said: “Our first rare earths customer is a globally recognised automotive company and I am delighted that Iluka has been entrusted to deliver refined critical minerals as part of its supply chain,” Iluka managing director Tom O’Leary said.
