MINEX Forum

Tag: German raw materials fund

  • DMT GROUP Engages in Technical Due Diligence for German Raw Materials Fund Projects

    DMT GROUP Engages in Technical Due Diligence for German Raw Materials Fund Projects

    DMT GROUP, a prominent player in the mining and commodities sector, has been appointed to conduct technical due diligence for projects under the German Raw Materials Fund, which was established by the German government. This initiative aims to secure long-term access to critical raw materials, reduce strategic dependencies, and enhance the competitiveness of German and European industries. The fund is managed by KfW on behalf of the Bundesministerium für Wirtschaft und Energie, with PwC overseeing the overall coordination of due diligence processes. DMT’s role focuses on evaluating the technical viability of various projects, assessing factors such as project implementation, process chains, infrastructure, cost assumptions, and potential technical risks.

    Julia Ridder, Project Manager for Technical Due Diligence at DMT, highlighted the comprehensive approach taken during the evaluation process. The technical due diligence involves a thorough examination of essential factors, including geology, mining operations, processing methods, logistics, and implementation strategies. This meticulous analysis aims to provide a reliable foundation for investment decisions that will bolster the supply of raw materials in Germany and across Europe. The results of these evaluations will inform technical assessments, recommendations, and risk analyses, ensuring that investments are based on solid technical groundwork.

    Jens-Peter Lux, Managing Director at DMT, emphasised the significance of the German Raw Materials Fund as a strategic tool for advancing critical raw material projects. He noted that similar initiatives are emerging in other European countries, reflecting a broader commitment to enhancing national security regarding raw material supplies. This fund represents a crucial step towards fostering long-term cooperation within the extractive sector across Europe, aiming to strengthen the region’s resilience and competitiveness in the global market.

  • Arafura Rare Earths Locks In $145 Million Australian Government Financing as Nolans Project Reaches $659 Million in Committed Funding

    Arafura Rare Earths Locks In $145 Million Australian Government Financing as Nolans Project Reaches $659 Million in Committed Funding

    Arafura Rare Earths has finalised agreements with Australia’s National Reconstruction Fund Corporation for approximately $145 million in government support, bringing the total equity and equity-like commitments secured for its Nolans rare earths project in the Northern Territory to around $659 million.

    The agreements formalise a commitment whose key terms were first established in January 2025, with the final contracts now completed and the conversion price at which government support could be transformed into Arafura shares also defined. The National Reconstruction Fund Corporation is a state-owned body established to support domestic manufacturing and industrial capability.

    The latest milestone follows binding commitments secured in April 2026 from Germany’s raw materials fund and Export Finance Australia, which together significantly expanded the project’s financing base. The Nolans project is planned to become Australia’s first facility to combine rare earth mining with downstream processing at a single integrated site — a distinction that has attracted attention from governments seeking to build rare earth supply chains outside China.

    Despite the progress, several key steps remain before full financing can be achieved and a final investment decision made. Major project loan agreements still need to be finalised, shareholders must be engaged, and all conditions precedent to the investment decision must be satisfied.

    Arafura is seeking to supply neodymium-praseodymium oxide for use in permanent magnets for electric vehicle motors and wind turbines, with planned output of 4,440 tonnes per year from the second half of 2029.