Energy Fuels Is Expected To Make An Investment Decision Regarding The Donald Rare Earth Project in The Third Quarter.

HOUSTON, August 6th (Argus) - US rare earth producer Energy Fuels expects to make a final investment decision on the Australian Donald rare earth project as early as the third quarter. The previous financing efforts have delayed the project schedule.
"The investment decision for the Donald project has been postponed this year, but I believe we are making very good progress. For us, the key is to finalize our financing plan," said Chief Executive Officer Ross Bhappu at the company's second-quarter earnings call on Thursday. The company is concentrating its financing efforts on Australia, and Bhappu plans to travel there later this month to advance the negotiations.
The progress in Madagascar is still related to the stability agreement with the government. Energy Fuels has drafted a memorandum of understanding for the Vara Mada project and is currently working to reach an investment agreement. Bhappu said he hopes to advance this agreement in the coming months. In the Bahia project in Brazil, drilling has resumed based on the 2025 exploration license, and resource estimates are expected to be conducted by the end of this year or early 2027.
The range of raw material options has expanded.
Energy Fuels pointed out that if any project encounters unexpected situations, it has alternative sources of rare earth minerals.
The company continues to obtain monazite from Chemours' operations in Florida and Georgia. It announced last week that it is producing a mixture of rare earth carbonates at its White Mesa mill in Utah, which will open the door to the supply of ionized minerals from Brazil and Asia. This route is expected to start operating by the end of 2027 or early 2028.
The company is also collaborating with heavy sand producers, who currently transport monazite or to China. Bhappu said that its ability to handle radioactive nuclides contained in monazite and mixed carbonate rare earths is "a differentiating factor" and also a competitive advantage as a buyer.
The second phase of the plant aims to process 50,000 to 60,000 tons per year of monazite, centered on the company's own mine supply, but the mixed carbonate rare earths can enter the leaching stage at the minimum incremental cost after cracking.
The 1B and 1C expansion projects worth $104 million are underway. The production of commercial heavy rare earth oxides (including terbium and dysprosium) will be produced by the end of 2027. Tests on these two elements have been completed, and work has been transferred to gadolinium and other possible heavy rare earth oxides.
Its acquisition of the Australian strategic materials ASM will be implemented by the end of August, and the transaction with Vacuumschmelze is expected to be completed in early 2027.
The company expects that by 2028, the oxide production will be sufficient to meet 70% of ASM's metal and alloy production capacity and more than 100% of Vacuumschmelze's 2000-ton/year magnet production capacity in South Carolina, and plans to increase it by six times to 12,000 tons/year by 2031.
The $104 million 1B and 1C expansion project has received a conditional $725 million loan from the Office of Strategic Capital to support the expansion.
Energy Fuels reported a loss of $34 million in the second quarter, with revenue of $25 million, compared to a loss of $22 million in the same period last year.