The Australian Government’s National Reconstruction Fund Corporation (NRFC) has announced a $200 million investment in Arafura Rare Earths, marking a step in strengthening Australia’s critical minerals sector.
This investment will support the development of the Nolans Project, a new mine and processing facility located 135 kilometres north of Alice Springs, the government said in a news release.
The funding will enable Arafura Rare Earths to secure the remaining capital needed to begin construction of the facility, projected to create 600 jobs during its construction phase and provide 350 ongoing positions once operational.
The project is also set to deliver significant economic and employment opportunities for First Nations communities in the Northern Territory, including training and business service initiatives.
According to the government, rare earth minerals, essential components for manufacturing magnets used in wind turbines, electric vehicles, and defence equipment, are increasingly in demand.
The market for processed rare earth minerals is expected to double by 2030, with production currently dominated by a single global supplier.
The Nolans Project is expected to produce approximately 4,440 tonnes of neodymium and praseodymium (NdPr) annually, contributing around 4 per cent of global demand by 2032.
As the first project of its kind in Australia and one of the largest in the world, it represents an advancement for the Northern Territory and the nation.
This NRFC investment builds on earlier contributions from the Critical Minerals Facility and the Northern Australia Infrastructure Facility.
Since November, the NRFC has committed more than $360 million across various projects, with the Arafura Rare Earths investment standing out as the single largest to date.
Minister for Industry and Science Ed Husic highlighted the transformative impact of the investment, emphasising its role in creating a sovereign supply of critical minerals while driving down emissions and bolstering supply chains.
He stated, “This investment will create a sovereign supply of these critical minerals, mined and refined onshore, as well as new export opportunities. And it means hundreds of secure, well-paid jobs for central Australia, including significant economic opportunity for First Nations communities.”
For further details, visit www.nrf.gov.au.
