The bottom line: $840 million in federal lending for a Nebraska rare earth mine is still not approved. Federal officials spent Wednesday, October 14, at the construction site of NioCorp’s Elk Creek project, about 75 miles southeast of Lincoln, and said they back it. The loan awaits final due diligence.
The numbers on the mine
Elk Creek is expected to cost $2 billion to build and would employ up to 500 people over a 40-year life. Its main product is niobium, which strengthens steel. It is also meant to yield scandium, titanium and rare earth materials used in high-performance permanent magnets. Many of those minerals now come from China.
Where the financing stands
Export-Import Bank Chair John Jovanovic signed what he called a letter of support at a ceremony on site. The bank had signed a letter of interest back in 2023. Jovanovic said the $840 million loan hinges on final due diligence, which he expected to wrap up “shortly.”
The visit fell in the middle of EXIM’s review of NioCorp’s application for debt financing under its Make More in America initiative. Investors will note that no approval and no new federal commitment came out of the day.
Why Washington cares
Energy Secretary Chris Wright said the project is needed because China has made controlling rare earth mining and processing a priority. NioCorp says the United States leans heavily on imports for several of the minerals Elk Creek would produce, and depends entirely on imports for some of them. The company points to defense, aerospace, automotive and advanced manufacturing as the industries that use them.
Nebraska’s delegation turned out too. Sen. Deb Fischer called the mine “a big deal for our state, but it is a huge deal for our country.” Sen. Pete Ricketts, Rep. Adrian Smith and Gov. Jim Pillen also attended. The event was closed to the public because of construction-site safety and security rules, though a livestream was planned for 12:30 p.m. Central.
Sources
- Federal officials boost southeast Nebraska rare earth mining project
- NioCorp Announces U.S. Energy Secretary Visit to Elk Creek Critical Minerals Project as EXIM Financing Review Continues
