June 28 (Reuters) – Australian Strategic Materials Miner ASM.AX said on Monday it received a loan of AU $ 200 million ($ 151.68 million) to develop its flagship Dubbo rare earth project in New South Wales as demand for critical and rare earth metals has skyrocketed worldwide.
The rare earth producer has received funding from Export Finance Australia (EFA) to build a project that will produce metals such as zirconium and niobium, which are considered important to the economy, and rare earth metals including neodymium and praseodymium.
“The critical metals we will be producing through the Dubbo project are in high demand for a range of advanced industrial applications, including energy efficient technologies, electric vehicles,” Managing Director David Woodall said in a statement.
Debt financing, driven by mining deals and environmental permits, comes at a time when battery metals and minerals are in high demand amid growing calls to meet climate change targets and reduce carbon emissions.
“Our discussions with potential acquisition, equity and financing partners for the Dubbo project have been very positive and ongoing,” added Woodall. (https://bit.ly/3dllCU6)
The miner’s shares are up 3% as of 04:07 GMT after rising 2.5% earlier in the day.
($ 1 = AU $ 1.3186)
(Reporting by Samir Manekar in Bangalore; editing by Amy Karen Daniel)
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