MELBOURNE (March 21): Australian Strategic Materials said on Thursday it has received a letter of interest (LOI) for a debt funding package of up to US$600 million (RM2.82 billion) from the Export-Import Bank of the US to support construction of its Dubbo rare earths project.

If confirmed, this would be the first US investment in rare earths processing in Australia, and comes as Western nations build supply chains outside of China to produce magnets used in sectors from windfarms to defence.

The Australian rare earths developer has plans to build out its Dubbo rare earths mine and processing plant 400km northwest of Sydney, for which it is seeking customers and finance.

It last year agreed to sell neodymium iron boron alloy from its South Korean metals plant to US-based rare-earth magnet maker Noveon Magnetics Inc.

Australia last week said it would provide up to A$840 million (US$550 million or RM2.62 billion) for a combined rare earths mine and refinery in the country's Northern Territory, owned by Arafura Rare Earths.