A total of $360 million is now committed to the project. Once operational, the mine will be the fourth-largest rare earths mine in the world outside China and the second-largest in Australia.
The mine will cover up to 2,700 hectares near the Wimmera farming town of Minyip, home to about 500 people, extracting zirconium, titanium and rare earth elements including neodymium and praseodymium. Rare earths are critical inputs for clean-energy technologies such as wind turbines and electric vehicles, while zirconium and titanium are used in medical devices and household items such as paint. Trace amounts of uranium will also be extracted from the ore once it is shipped to the United States.
Astron Corporation managing director Tiger Brown welcomed the "significant investment" from government agencies.
"The funding is a major vote of confidence in the globally significant Donald project and an important milestone on our long road to making it a reality," he said. "It's really exciting that we'll see rare earths from the Wimmera region of Victoria not just being processed, but actually being in electric vehicles and other applications all across the Western world and beyond."
The project has a planned 52-year mine life over two phases and has been granted major project status in recognition of its national strategic importance, as well as full approval from the Victorian government. Brown said one more step in the approvals process remained before construction could begin before Christmas, with mining set to start in 2028.
"We're working with commercial banks to make that conditional approval a full-fledged approval with commercial lenders," he said.
The company predicts the project will contribute $205 million annually to the regional economy and create 200 construction jobs and 150 ongoing operational jobs.
Minister for Resources Madeleine King said Australia had some of the world's richest critical minerals deposits.
"Projects like this are helping us turn those resources into long-term economic and strategic opportunities," she said. "The Donald Mineral Sands Project will position Australia as an even more reliable supplier of critical minerals to our international partners and allies."
The mine has long been opposed by local farmers, with more than 1,000 hectares of prime farmland to be excavated and at least one home rendered uninhabitable. Fourth-generation farmer Paul Trotter said about 320 hectares of his land was in the mine's path, and he was fighting to retain it for food production.
"Mining should only occur on ground that isn't suitable for food production," he said. "We're going to run out of food to feed the nation and the world if they keep doing this. There is a place for mining in the right area, but in prime agricultural land where we live, it's not."
Other farmers have raised doubts over whether the land can be rehabilitated to a productive standard after mining and whether local roads can withstand extra trucks moving product to a nearby freight hub.