Copi mining project developer RZ Resources plans a $70 million upgrade of a mothballed Queensland mineral separation plant, with capacity to support further critical minerals ventures.

RZ Resources chief executive officer Campbell Jones said the revamped Brisbane mineral separation plant was anticipated to come online in early 2027, while the company’s Copi mine in New South Wales was expected to be operational by the end of 2028.

The combined project received a major shot in the arm this week, when it was among a raft of Australian critical minerals ventures earmarked for support from the official export credit agency of the United States.

The Copi project has received a coordinated non-binding and conditional Letter of Support and Letter of Interest from Export Finance Australia (EFA) and the Export-Import Bank of the United States (EXIM) respectively flagging potential financing of up to $US450 million (about $692 million).

The Copi mine, together with the Brisbane MSP, will produce rare earths (light and heavy), titanium feedstocks (rutile and leucoxene), premium zircon products, and rare earth element concentrate ready for downstream refining.

Critical minerals processing avenue for third parties

With the upgraded MSP expected to be operational before the Copi mine, it would initially process critical minerals from third parties otherwise earmarked for processing offshore, Mr Jones said.

He said also that the Copi product was expected to use about half of the upgraded plant’s capacity once available, leaving room to support other critical minerals mines in Australia and maintain a sovereign supply chain.

The Copi project is expected to support a 240-strong workforce during operations, including about 70 people at the Brisbane MSP.

Previously operated by Consolidated Rutile, Iluka, and Sibelco, the Brisbane MSP was acquired by RZ Resources in 2021 and stands in care and maintenance.

“It was an attractive site from a strategic value perspective as it is the largest MSP located on the east coast of Australia,” Mr Jones said.

“There are dual benefits to the site; first, significantly reducing capital cost and time to production not only for RZ’s Copi mine, but also for other mineral sands projects, and second, materially increasing Australia’s sovereign mining and processing of key materials, making us and our allies far less vulnerable to global supply chain disruptions for these critical minerals.” 

While maintaining the same flow sheet, RZ would upgrade the Brisbane plant to improve the quality of the product it could produce to meet customer specifications as well as lifting capacity, he said.

“The great news is that much of the machinery required to complete these upgrades is sold, distributed and manufactured in South-East Queensland,” Mr Jones said.

In addition to RZ Resources, EXIM issued LOIs to:

• Graphinex (graphite, Queensland) – $US860 million (about $1.32 billion);
• Latrobe Magnesium (magnesium, Victoria) – $US122 million (about $188 million);
• Arafura (rare earths; Northern Territory) – $US300 million (about $461 million);
• Sunrise (scandium; New South Wales) – $67 million (about $103 million);
• Northern Minerals (rare earths, Western Australia) – $US230 million (about $354 million);
• VHM (rare earths and minerals sands; Victoria) – $US200 million (about $308 million).
  

RZ Resources executive chairman David Fraser said the support announced this week was a powerful signal of confidence in the Copi project and in Australia’s role as a reliable critical minerals partner.

“It reflects the depth of our shared commitment to building sovereign capability, strengthening supply chains, and deepening the partnerships between Australia, Japan, the United States and other allies,” he said.

EFA’s non-binding and conditional Letter of Support for the Copi project remains subject to further due diligence, including environmental, social, and financial assessments, credit, risk and legal approvals and compliance with applicable laws and regulations. EXIM’s non-binding Letter of Interest signals readiness to consider project financing, subject to further credit, technical, and environmental due diligence.

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