A mineral sands project in Australia's far north-west will receive a $95 million boost from taxpayers under the latest round of funding from the federal government's Northern Australia Infrastructure Fund (NAIF).

The $95 million loan to ASX listed Sheffield Resources will be used to build infrastructure around the company's Thunderbird project in the Kimberley region, which is scheduled to begin exporting zircon, ilmenite, titanium dioxide and other mineral sands within a year.