Currently progressing a definitive feasibility study at Browns Range, in Western Australia's north, Northern Minerals is also looking to secure debt finance before a final investment decision is made in 2024.

That has involved discussions with both the NAIF and Export Finance Australia, the country's export credit agency.

The project has now been strategically assessed by the NAIF and moved on to the next stage of the assessment process.

Since its creation, the NAIF has approved finance of more than $4 billion for infrastructure projects and development across Northern Australia.

EFA discussions are continuing.

Northern Minerals executive chairman Nicholas Curtis said gaining the preliminary support of NAIF was a significant first milestone in the financing journey for Browns Range.

"We believe this highlights the strong progress we have made across the key elements necessary for a bankable project, being our HRE resources, our proven processing ability and our long-term offtake arrangements," he said.

"NAIF is an important supporter for the project with their proven ability to support critical minerals projects outside the mainstream commodities."

Curtis said the company was committed to delivering the project and would continue to pursue various financing avenues to ensure its success.

"The company is optimistic about the future of the project and will provide updates as significant developments occur," he said.