Goongarrie Hub Could Access AUD 1 Billion Financing from EFA and US EXIM

Strategic Financing Milestone

Ardea Resources Limited’s subsidiary, Kalgoorlie Nickel Pty Ltd (KNPL), has taken a significant step forward in advancing the Goongarrie Hub project with conditional and non-binding letters of support and interest from two major export credit agencies. Export Finance Australia (EFA) and the US Export-Import Bank (EXIM) have jointly indicated potential financing of up to AUD 1 billion equivalent, underscoring the project’s strategic importance in the global critical minerals landscape.

The Goongarrie Hub, located 70 kilometres north of Kalgoorlie-Boulder in Western Australia, hosts one of the largest nickel-cobalt resources in Australia. This project is positioned to serve both traditional industrial markets, such as stainless steel manufacturing, and rapidly growing sectors like electric vehicles and energy storage, where high-purity nickel and cobalt are essential.

Coordinated Support Reflects Geopolitical Priorities

The coordinated support from EFA and EXIM comes through the Single Point of Entry (SPE) initiative, designed to streamline referrals and enable joint financing for critical mineral projects. This collaboration reflects broader geopolitical and economic priorities shared by Australia and the United States to secure supply chains for critical minerals vital to clean energy technologies.

EFA’s conditional Letter of Support indicates potential backing of up to AUD 500 million, while EXIM’s Letter of Interest suggests potential support of up to USD 350 million under its Supply Chain Resiliency Initiative. Both agencies have made clear that their support is subject to further due diligence, including environmental, social, financial, and legal assessments, as well as compliance with applicable regulations.

Project Development and Market Context

Ardea’s Managing Director and CEO, Andrew Penkethman, highlighted the milestone as a validation of the Goongarrie Hub’s global strategic significance. The project aims to develop a large-scale, long-life, and cost-competitive nickel-cobalt operation, leveraging joint venture partnerships with Sumitomo Metal Mining and Mitsubishi Corporation.

Nickel’s demand is being driven by its dual role in traditional stainless steel markets and the burgeoning electric vehicle battery sector. The Goongarrie Hub’s resource base, comprising 854 million tonnes at 0.71% nickel and 0.045% cobalt, positions it as a critical supplier in these expanding markets.

Next Steps and Market Implications

While the letters of support and interest are non-binding and conditional, they represent a strong vote of confidence from government-backed financial institutions. The coming months will be crucial as Ardea progresses through due diligence and regulatory approvals, potentially unlocking substantial capital to bring the Goongarrie Hub into production.

This development also signals increasing alignment between Australian and US strategic interests in securing critical mineral supply chains, a factor that could influence future financing and policy decisions in the sector.