The US government has pulled a surprise move by offering to back a cash-strapped mineral sands company in the Victorian Mallee, which is yet to start open cut mining.

The Trump administration has provisionally offered $US200 million ($304 million) to ASX-listed VHM Ltd to help end its reliance on critical minerals from China.

The offer has come from the US government's EXIM (Export Import Bank of the US) under the US government's "Make More in America Initiative".

The rare earths and mineral sands project at Goschen, south of Swan Hill, has stirred up controversy among local grain growers who are campaigning against the project.

The Victorian government provided Ministerial approval for the hotly contested Goschen mine late last year.

A six-week public inquiry into the proposed mi

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