The Australian government has announced an $840 million investment to construct the country’s first combined rare earths mine and refinery in the Northern Territory.
Australian mineral exploration company Arafura will operate the rare earths mine and refinery 125 km north of Alice Springs.
The new refinery is expected to deliver over 300 new jobs across the Northern Territory and cement Australia’s global position as a renewable energy superpower and a leader in the ethical and sustainable manufacturing of critical minerals.
Construction of the refinery is set to create over 200 jobs, which includes 125 full-time ongoing roles and 20 per cent local Indigenous employment.
The government’s massive investment in the project is part of its commitment to securing a future made in Australia, which has seen the expansion of the critical minerals facility and the Northern Australia Infrastructure Facility to a combined $11 billion.
The contribution is expected to unlock further investment from international financiers and commercial banks.
Prime Minister Anthony Albanese said the establishment of the new refinery in NT will help Australian and Territory companies and workers capture more value from the critical minerals deposits Australia has.
“This project is a major vote of confidence in the Northern Territory, which continues to punch above its weight in global trade,” he noted.
“Arafura’s project is an example of how this Government is attracting investment into our critical minerals sector that will significantly contribute to the Territory’s role in energy transition and reducing greenhouse gas emissions,” said NT Chief Minister Eva Lawler.
“Backed by record levels of investment into exploration, the mining and processing of critical minerals is a priority opportunity for the Territory to create more work opportunities for Territorians.”
Manufacturers use rare earths to produce powerful magnets and renewable energy and defence technologies.
“Australia’s critical minerals will be crucial to the new low-emissions technologies that will help lower emissions and our trading partners to meet their climate goals,” said Minister for Resources and Minister for Northern Australia Madeleine King.
“The combined funding from the Critical Minerals Facility and the NAIF will help Australia build downstream industries and support our goal to become a renewable energy superpower by 2030.”
