Arafura Rare Earths to ramp up rare earths mining in NT

The federal government has announced that Western Australian resources company Arafura Rare Earths will ramp up rare earths mining with support through the $1.2 billion Critical Minerals Strategic Reserve.

The company has announced a final investment decision on its Nolans rare earths project in the Northern Territory, and the Government has provided a non-binding commitment to secure 500 tonnes of rare earths from the project through the Reserve. Arafura will now move to commence construction on the project, 135 km north of Alice Springs, which will mine and process rare earths.

Treasurer Jim Chalmers said the deal with Arafura, which has led to the company’s decision to expand rare earths mining operations in Australia, was a win for workers and the nation's economic security.

“This is a win for workers and it’s a win for Western Australia and a win for the Northern Territory,” he said. “The world needs critical minerals, Australia has plenty of them, and we’re helping workers and businesses make the most of this big opportunity.”

Minister for Resources and Northern Australia Madeleine King said the announcement demonstrated the value of the Critical Minerals Strategic Reserve.

“The Nolans project is a major step forward for Australia’s rare earths industry,” she said.

The Nolans project will produce neodymium-praseodymium oxide, or NdPr, a critical input for high-performance permanent magnets used in electric vehicles, wind turbines, advanced manufacturing and defence technologies.

Once operational, the Nolans Project is projected to supply approximately 4-5% of global rare-earth demand, making significant inroads to building an alternative supply chain in products that have been the subject of supply bans and disruptions.

Arafura already has additional offtake agreements with European, Korean and North American counterparts, and the project has attracted strong backing from key international partners, including support from the export credit agencies of the United States, Canada, Germany and the Republic of Korea, as well as support from the Commonwealth Bank of Australia and Hancock Prospecting.

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