Arafura Rare Earths has greenlit its Nolans rare earths project in the Northern Territory, reaching a final investment decision (FID) for a project that could position Australia as a vital producer of critical minerals outside of China.
The development will comprise a mine, processing plant, and multi-element infrastructure. The operation is built around the world-class Nolans Bore deposit, which holds a rich concentration of rare earth elements, phosphate, uranium, and thorium.
The project’s cornerstone output will be neodymium-praseodymium (NdPr) oxide, a critical component in the high-strength permanent magnets that power electric vehicle motors, wind turbines, aerospace technology, and advanced defence systems.
The breakthrough development follows a targeted intervention by the federal government via recent reforms to Export Finance Australia (EFA) and the newly minted Critical Minerals Strategic Reserve.
By allowing EFA to step in as a credible counterparty with non-binding offtake arrangements, the policy framework successfully mitigated market volatility and bridged the traditional financing gap for the junior explorer.
Under the landmark arrangement, the Strategic Reserve will cover up to 1,000 tonnes per annum of NdPr oxide, underwriting the project despite global pricing pressures and looming expiry deadlines on previous financial approvals.
The Nolans project reaches FID at a moment of structural realignment in global critical minerals markets as governments accelerate initiatives to reduce single-source supply dependency.
Nolans – as Australia’s first fully integrated ore-to-oxide rare earth operation – sits at the centre of this strategy. Its single-site processing model eliminates dependency on concentrated processing infrastructure, a differentiating approach that saw the Nolans project being highlighted under the US and Australia joint framework for critical minerals.
With FID now declared, the company is targeting to formally commence construction activities in September.
Arafura’s Managing Director Darryl Cuzzubbo said: “When we look at the architecture of this project – Australian ore, Australian and European processing technology, Korean, European and American end-users, with the full weight of the Australian government and alliances behind us – what we are building is not just a mine.
“We are building a template for how sovereign aligned supply chains can be constructed when governments and industry move together with shared purpose.”
Minerals Council of Australia CEO Tania Constable praised the milestone, noting it demonstrates how smart policy can translate directly into heavy industrial investment and regional employment.
“The Strategic Reserve provides a practical tool to support investment decisions where uncertainty would otherwise delay FID,” Constable said.
“Australia has globally significant critical mineral resources, but bringing projects online – particularly in rare earths – requires navigating opaque markets, long development timelines and concentrated supply chains.”
