ElementUS Department of Energy Loan Application Advances

ElementUS Minerals qualified for Part II of a Department of Energy (DOE) Loans Program Office (LPO) $400 million application. The company’s main business is extracting and refining strategic minerals such as alumina, iron, and rare earth metals, from bauxite residue waste using a low-carbon-footprint process with zero mining impact. The DOE’s Part II Application for a loan guarantee falls under the U.S. Department of Energy (DOE) Title 17 lean Energy Financing Program.

Part I of ElementUS’ application for close to $400 million featured an analysis of the company’s process, business plan, and anticipated carbon footprint. The LPO’s invitation to the company to submit a Part II application for a loan acknowledges the former’s commitment to ensuring the project satisfies the technical eligibility requirements outlined in the applicable Loans Program Office solicitation. If ultimately successful, the DOE-guaranteed loan will provide funding for ElementUS’ construction of a commercial scale mineral processing plant in Louisiana.

Joe Carrabba, chief executive of ElementUS, described the news as the inevitable outcome of “thousands of man-hours, months of work by many individuals” on the team, and extensive data analysis. Acknowledging the work that lay ahead in Part II of the loan application, Mr. Carrabba conveyed optimism about continuing toward acceptance into the program.

The LPO process comprises completing and passing a few more steps that would lead to a commitment and eventual funding of a U.S. Department of the Treasury Federal Financing Bank loan guaranteed by the DOE. The department’s invitation to submit a Part II application is no guarantee that the DOE will invite ElementUS into the due diligence and term sheet negotiations, that the DOE will offer the company a term sheet, or that the term sheet terms and conditions are consistent with terms proposed by the company. These outcomes depend on the results of DOE review and evaluation of a Part II Application, and DOE’s decision whether to proceed.

David D'Addario, New Day Aluminum LLC

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