The Australian government has conditionally invested $180 million in the controversial Donald Rare Earth and Minerals Sands Project planned for western Victoria.
Once operational, the Astron Corporation mine in Donald will be the fourth-largest rare earths mine in the world outside China and the second-largest in Australia.
Two federal government agencies, the National Reconstruction Fund Corporation and Export Finance Australia, have issued conditional approval for up to $110 million and $70 million respectively, to support the project.
The mine is a joint venture between locally registered Astron Corporation and the United States uranium giant Energy Fuels, which has already provided $183 million in funding.
A total of $360 million has now been committed to the project.
Two federal government agencies have conditionally approved a total of $180 million for the Donald Rare Earth and Mineral Sands mine. (Supplied: Astron Corporation)
From the Wimmera to the world
The mine will be located near the Wimmera farming town of Minyip, which is home to about 500 people.
The mineral sands mine has been a controversial topic for the community, with concerned farmers fighting against the loss of prime agricultural land.
They are also concerned about the way the land will be rehabilitated after mining is completed.
Astron Corporation plans to mine up to 2,700 hectares for critical minerals such as zirconium and titanium, along with rare earth elements including neodymium and praseodymium.
It also holds exploration and retention licences over an additional 40,000 hectares.
Rare earth elements are critical in the production of clean-energy technologies such as wind turbines and electric vehicles, while zirconium and titanium are used in medical devices and household items such as paint.
Trace amounts of uranium will also be extracted from the ore once it is shipped to the United States.
Astron Corporation has been approved to mine 2,700 hectares of land in western Victoria. (Supplied: Astron Corporation)
Astron Corporation managing director Tiger Brown said they were grateful for the "significant investment" from government agencies.
"The funding is a major vote of confidence in the globally significant Donald project and an important milestone on our long road to making it a reality," he said.
"It's really exciting that we'll see rare earths from the Wimmera region of Victoria not just being processed, but actually being in electric vehicles and other applications all across the Western world and beyond."
The project has a planned 52-year mine life over two phases, and has already been granted major project status in recognition of its national strategic importance.
It has been fully approved by the Victorian government.
Mr Brown said the company had to complete one more step in the approvals process before construction could begin before Christmas, with mining set to start in 2028.
Astron Corporation chief executive Tiger Brown. (Supplied: Astron Corporation )
"We're working with commercial banks to make that conditional approval a full-fledged approval with commercial lenders," he said.
The company predicts the project will contribute $205 million annually to the regional economy and create 200 construction jobs and 150 ongoing operational jobs.
Minister for Resources Madeleine King said Australia had some of the world's richest critical minerals deposits.
"Projects like this are helping us turn those resources into long-term economic and strategic opportunities," she said.
"The Donald Mineral Sands Project will position Australia as an even more reliable supplier of critical minerals to our international partners and allies."
Locals yet to be convinced
With more than 1,000 hectares of prime farmland to be excavated and at least one home rendered uninhabitable to make way for the mine, local farmers have long opposed the project.
Fourth-generation farmer Paul Trotter said about 320 hectares of his land was in the path of the mine, and he was fighting to retain it for food production.
"Mining should only occur on ground that isn't suitable for food production,"
he said.
"We're going to run out of food to feed the nation and the world if they keep doing this.
"There is a place for mining in the right area, but in prime agricultural land where we live, it's not."
Other farmers had doubts over promised rehabilitation of the land to a productive standard and whether local roads could withstand extra trucks moving products from the mine to a nearby freight hub.