Australian graphite company Graphinex will receive $1.3 billion in US funding to develop two graphite projects in North Queensland.
The Queensland Government says the company secured a letter of intent (funding pledge) from the Export-Import Bank of the US for US$860 million (A$1.32 billion) for a proposed Esmerelda graphite mine near Croydon, north-west Queensland, and a graphite processing plant in Townsville.
The Croydon mine is expected to create more than 200 jobs and was fast-tracked by the state government; the terms of reference for the project’s Environmental Impact Statement was released at the start of this month.
The news also follows the recent announcement of a $13 billion rare earth and critical minerals deal between Australia and the US.
GRAPHITE PRODUCTION BOOST
Minister for Natural Resources and Mines Dale Last says the US backing represents a vote of confidence in his government’s resources policy.
“This announcement shows what can be done by working with industry, instead of against it,” he claims.
“Queensland is home to world-class graphite reserves; Graphinex’s plan to mine, process and manufacture ultra-high performance anodes here in Queensland shows we are ready to lead the next wave of critical minerals investment. “
The company’s managing director, Art Malone says the financial support reflects the growing importance of graphite to US energy security and industrial resilience.
“This is a pivotal moment for Graphinex and a strong signal from Washington DC that graphite matters,” Malone says.
“The US has made it clear that secure supply chains for critical minerals are essential to advanced manufacturing and defence capability.”
Malon says the financial support will allow them to accelerate development, lock in partnerships, and create a secure and scalable export market in the US.
Trade Minister Ros Bates claims his government’s push to attract global investors is delivering results.
“Queensland is open for business and is back on the world map as a location for trade and innovation – we’re seeing the benefits.
“The timing couldn’t be better to showcase investment interest in Queensland, with the International Mining and Resources Conference in Sydney this week putting Queensland’s resources sector front of mind for more than 10,000 delegates,” he says.
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