Iluka Resources is eyeing a premium for non-China supply of rare earths oxides as it prepares to start construction of Australia’s first fully integrated refinery, thanks to a $1.25 billion non-recourse loan from taxpayers.

The mineral sands miner is in the enviable position of not having to sign rare earths off-take agreements for now as funding for the plant at Eneabba in Western Australia is coming from the federal government’s critical minerals fund being administered by Export Finance Australia.