The tiny western Victorian town of Minyip could soon host one of the world's largest rare earth mines after Australian-based Astron Corporation secured $183 million in funding from US uranium producer Energy Fuels.

Astron Corporation chief executive Tiger Brown said the project was globally significant.

"We're the fourth-largest rare earth project in the world outside of China and the second largest in Australia," Mr Brown said.

Rare earth elements are used to build magnets for wind turbines and electric vehicles, and have been identified by the Australian and US governments as critical to the countries' renewable energy transitions and military defence.

Mr Brown said production at the site could start as soon as 2026 and the company was aiming to raise an additional $240-$250 million in loans by the end of 2024, ahead of construction in 2025.

"There is a mountain to climb, but we've got a strong confidence in being able to deliver on the timetable that we set out," he said.

The company has submitted a work plan for the mine and is waiting for final approval from the Victorian government.

The rare earths concentrate produced at the site will contain trace amounts of radioactive elements uranium and thorium, which Mr Brown said would be safely managed.

"We've done significant work around making sure that the risk is beyond minimal," he said.

"We've got an approved radiation management licence from the state of Victoria. 

"And in addition to that, all our operational health and safety standards has to be kept to the highest standards."

ASX-listed Astron Corporation first received a mining licence from the Victorian government for its Donald Rare Earths and Mineral Sands Project in 2004.

It had been waiting on funding to progress the project until Energy Fuels's commitment.

The mining licence covers 2,500 hectares of land in Victoria's Wimmera region, with an additional 40,000 hectares of mainly agricultural land under exploration.

In a statement, Energy Fuels, the largest uranium producer in the US, said it planned to ship rare earth element concentrate from western Victoria to White Mesa Hill in Utah for processing into rare earth oxides.

Minyip farmer Ryan Milgate, whose property is about three kilometres from the planned mine site, said he was disappointed by the lack of consultation the company had offered the community.

"I think if Astron are going to go ahead with this and are genuine about engaging [with the community], I think they really need to think and look at how they do that," Mr Milgate said.

He said residents were concerned about an increase in traffic on local roads as Astron shipped the ore to port.

Mr Brown said he anticipated freight movements of about one truck per hour out of the mine site and said the company would be paying to upgrade roads to improve safety.

"We want to address people's concerns the best we can," Mr Brown said.

"We take our social standing seriously. Let us know if there's any issues that you have, and we'll try and do our best."

The proposed mine is one of three mineral sand mines in planning stages in western Victoria, after WIM Resources submitted an environmental effects statement for its Avonbank project in late 2023 and mining company VHM submitted an environmental effects statement for its Goschen mineral sands project near Swan Hill in November.