The Northern Australia Infrastructure Facility (NAIF) will invest up to $50 million to create jobs and give a further boost to Western Australia's economy by providing support for the Butcherbird manganese project.
While the Pilbara is the home of Australia's iron ore and gas industries, the region also contains significant deposits of manganese - an element on Australian Government's Critical Minerals List.
The NAIF loan will enable Perth-based company Element 25 to increase its production of manganese concentrate threefold to 1.1 million tonnes per annum, adding an estimated $909 million to the Pilbara's Gross Regional Product.
Strong and secure supply chains of manganese are crucial. The metal is used in steel and alloy production and is a key material in emerging battery technology.
It is estimated the project will create 150 construction jobs and around 230 operational positions through the mine's 18-year lifecycle.
Element 25 has committed to a minimum 10 per cent Indigenous employment target and minimum 5 per cent of jobs recruited from the Pilbara region.
Minister for Resources and Northern Australia, Madeleine King, said the expansion of the Butcherbird manganese project would be a major boost for Northern Australia.
"The Pilbara is the engine room of Australia's economy and projects like this will ensure that engine keeps running for many years to come," Minister King said.
"This project is creating jobs, driving the economy of the Pilbara, and delivering outcomes for First Nations Australians."
To date the NAIF have invested $4.4 billion in 32 projects across northern Australia.
As part of the Australian Government's Critical Minerals Strategy, NAIF has earmarked $500 million of funding to develop critical minerals projects.
Projects currently under consideration include developments in rare earths, vanadium, lithium hydroxide, high-purity alumina, and silicon.
"I believe the Butcherbird manganese project will be another in a long list of success stories stemming from the NAIF's investments."
The NAIF loan is subject to all required financing conditions and Government approvals being met.
