(Bloomberg) – The Australian government will provide a total of A$585 million ($375 million) in loans to two miners to build a domestic industry in metals and minerals key to the energy transition.
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The funding will come from the A$4 billion Critical Minerals Financing Facility, which was first established in 2021 and subsequently expanded. This is part of Canberra's efforts to counter China's stranglehold on the supply chain for many materials essential to decarbonising the global economy.
AlphaHPA will receive a A$400 million loan to build Australia's first high-purity alumina processing facility in Queensland, the government has announced. Renascor Resources Ltd. is set to win A$185 million to support the rapid construction of a graphite mine and processing plant in South Australia. The loan was originally approved in February 2022.
LenaScor shares rose as much as 33% in Sydney, while AlphaHPA rose as much as 15%.
Read more: Australia says it wants to take on China on critical minerals issue
China is the largest producer of graphite, which is used in lithium-ion battery negative electrodes, and Lenacore's Sivia project will be Australia's first foray into this field. According to the company, this is the second largest confirmed deposit in the world.
Australia has in recent years strengthened its vital minerals industry to tap into its vast domestic reserves of raw materials used in everything from electric car batteries to solar panels to munitions.
“These two important mineral projects will help ensure good, safe manufacturing jobs and clean, reliable energy,” Prime Minister Anthony Albanese said in a statement.
Prime Minister Albanese recently announced a “Future Made” plan similar to the Biden administration's anti-inflation law to help the country build green manufacturing and mining industries and compete with growing government subsidies in other economies around the world. announced the introduction of the “In-Australia Act”.
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