Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Mining Infrastructure topic
No spam. Unsubscribe anytime.
Commission ratifies application for $11 million infrastructure loan for Ares Mining; county to review draft agreement
Summary
The commission ratified submission of an application to the Community Impact Board (CIB) for an $11 million throughput infrastructure loan for Ares Mining’s proposed rare-mineral operations and asked county staff to scrutinize any draft agreement for county obligations and to consider a time-cost recovery fee for county review.
Millard County commissioners ratified on Tuesday the county’s submission of an application to the Utah Community Impact Board (CIB) for a possible $11 million loan to support throughput infrastructure for Ares Mining’s proposed rare-mineral project in the county.
County staff said CIB has conditionally awarded the loan to Ares subject to execution of final loan documents and that interpretation questions about the program’s new rules — from Senate Bill 187 — delayed earlier decisions. The county’s action at the meeting was limited to ratifying that the application had been submitted; no county loan or commitment was approved.
Why it matters: Staff and commissioners discussed the national strategic context for domestic rare-mineral production and the implications of restricting imports from foreign suppliers. Commissioners and staff emphasized they do not expect the county to take on loan liability but said they need to see the draft contract to confirm what, if any, administrative or processing responsibilities the county would assume.
County staff said the application Ares submitted requested an $11 million loan with a seven-year term; under CIB’s interpretation, a performance bond would not be required and Ares would privately obligate itself for the loan. Staff said Ares indicated it had capital collateral and that CIB had made an award subject to execution of documents.
Commissioners asked staff to obtain the draft loan documents and to have county counsel and finance review them. One commissioner proposed charging an application or processing fee to recover county staff and legal time reviewing private-sector financing arrangements; staff said the county could consider engaging an outside municipal finance advisor (for example, a public-finance team) and require the applicant to pay the review costs.
A motion to ratify the application was made and seconded and passed on the record. County staff said they will bring back any draft loan agreement and any recommended fee or review proposals for commission consideration.
Next steps: County staff will obtain the draft CIB loan agreement, have county counsel and the finance office review obligations, and return to the commission with recommended conditions, fee proposals or requests for clarity before any county signature or commitment.
