Sydney, June 23rd (Argus) - Australian rare earth producer Iluka Resources has signed a binding purchase agreement to supply rare earths used in magnet production to an unnamed global automotive company, including neodymium, praseodymium, dysprosium and terbium.
The company announced on June 22nd that the acceptance or payment of the purchase agreement will commence in 2028 and the initial term will be four years. It covers 1200 tons of rare earth oxides, equivalent to 10% of Iluka's planned output during this period.
Iluka said that the price of each product is a higher price linked to the market.
The Australian Export Finance Agency (EFA) also confirmed that Iluka will receive a 16.5 billion Australian dollar (equivalent to 1.2 billion US dollars) unsecured federal government loan for its Eneabba rare earth refining plant in Western Australia, with an annual production capacity of 23,000 tons. The company stated that the refinery is currently over 50% completed. Iluka said that the refinery is planned to commence production in the middle of 2027.
Iluka said that construction company Civmec has been awarded a contract to complete the structural, mechanical, piping, electrical and instrumentation works at Eneabba. The capital estimate for the refinery remains between 1.7 and 1.8 billion Australian dollars.
