Arafura Rare Earths has secured A$200m ($123.7m) of investment from the Australian Government’s National Reconstruction Fund Corporation (NRFC) to advance the Nolans Project in the Northern Territory.
This investment marks NRFC’s largest commitment to date and has been termed as a “significant investment milestone” for the rare earth project.
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NRFC’s investment is part of Arafura’s broader capital raising efforts, enabling the company to gather the remaining funds necessary to initiate the project.
The project, with a proposed 38-year lifespan, involves constructing a mine, processing plant and related infrastructure to produce 4,440tpa of NdPr oxide.
These minerals are essential for the global shift to net zero, acting as crucial components in the industrial magnets utilised in electric vehicles and wind turbines.
Arafura managing director and CEO Darryl Cuzzubbo said: “An investment of this significance by the NRFC highlights the importance of Arafura and the Nolans Project to Australian rare earths downstream processing capabilities and building resilience in a global supply chain.
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By GlobalData“We are proud of this partnership with the NRFC and acknowledge their commitment and professionalism as we continue to move the Nolans Project closer to a final investment decision.”
This commitment aims to enhance Australia’s access to rare earth minerals and also creates employment opportunities, particularly for indigenous Australians.
Located 135km north of Alice Springs, the Nolans Project is expected to generate more than 600 jobs in the construction phase and approximately 350 during steady-state operations.
NRFC chair Martijn Wilder AM said: “Rare earth minerals are strategically important resources that are crucial to modern economies and the global transition to net zero.
“Arafura’s Nolans Project demonstrates the enormous contribution that Australia can make to the global supply of rare earth minerals and the considerable opportunities for Australia to add value to the raw materials that it mines.”
As Australia’s first ore-to-oxide rare earths processing operation, the Nolans Project is poised to meet nearly 4% of the world’s forecast demand for NdPr.
Its location is said to bring substantial benefits to the local community, with Alice Springs serving as the logistics hub for both construction and operational phases.
