Uranium and critical minerals company Energy Fuels has received the final major regulatory approval required to construct and operate the Donald rare earth and mineral sand project in Victoria, Australia. The approval clears the way for a final investment decision (FID) later this year.

The government of Victoria has approved the work plan for the joint venture (JV) between US-based Energy Fuels and Australia’s Astron.

“The work plan approval for the Donald project is significant as it moves us one step closer to creating an important link between the United States and Australia on rare earths and critical minerals,” said Energy Fuels president and CEO Mark Chalmers.

“We believe the Donald project is exceptional, as it contains large quantities of the ‘light’, ‘mid’ and ‘heavy’ rare earth oxides (REOs) needed for a variety of commercial, clean energy and defence technologies.”

Energy Fuels plans to import the rare earth concentrate from the Donald project into the US for processing at its White Mesa Mill in Utah. The mill is expected to produce separated REOs such as neodymium-praseodymium (NdPr), terbium, dysprosium, and samarium, with additional capacity planned under a Phase 2 expansion.

Phase 1 of the Donald project is expected to start in 2026, supplying between 7 000 t and 8 000 t of rare earth element (REE) concentrate a year. This equates to about 4 700 t of total REOs, including 990 t of NdPr, 84 t of dysprosium, and 14 t of terbium.

Once in production, the JV will sell all concentrate to Energy Fuels at prevailing market prices, while Astron or other global buyers will receive the titanium and zircon mineral sands. Profits will be shared pro rata between the two partners.

Energy Fuels said it expects the Donald project to become a major source of REE feedstock, supported by the high concentrations of xenotime – a mineral rich in “mid” and “heavy” REEs. Xenotime and monazite, also present at Donald, can be processed together at the White Mesa Mill.

The JV partners are targeting an FID by the end of 2025, with construction potentially starting within weeks of approval. A second phase of development at Donald could lift yearly production to between 13 000 t and 14 000 t, which would represent roughly 22% to 23% of the planned capacity at Energy Fuels’ expanded US mill.