The Australian government has announced a significant investment of $200 million in Arafura Rare Earths through the National Reconstruction Fund Corporation (NRFC).
This cornerstone investment will enable the development of the Nolans Project, located 135 kilometres north of Alice Springs.
The Nolans Project is set to become Australia’s first ore-to-oxide rare earths processing operation, marking a major milestone for the country’s resources sector.
The facility is expected to produce around 4,440 tonnes of neodymium and praseodymium (NdPr) annually, which will account for approximately 4 per cent of global demand by 2032.
This investment will create substantial employment opportunities, with 600 jobs during the construction phase and 350 ongoing positions once the mine and processing facility are operational.
The project also aims to provide significant economic benefits for First Nations people in the Northern Territory, with a target of 20 per cent Indigenous workforce participation.
Minister for Industry and Science, Ed Husic, highlighted the importance of this investment for Australia’s economic and national security.
“This investment will create a sovereign supply of these critical minerals, mined and refined onshore, as well as new export opportunities,” Husic stated.
The rare earth minerals produced at the Nolans Project will be crucial for manufacturing magnets used in various applications, including wind turbines, electric vehicles, and defence equipment.
With global demand for processed rare earth minerals expected to double by 2030, this project positions Australia as a key player in a market currently dominated by a single supplier.
Martijn Wilder, Chairman of the NRFC, highlighted the transformational nature of the project, stating that it represents exactly the type of investment the NRF is interested in — one of national significance with enormous benefits to Australia and the global supply chain for critical resources.
Arafura Rare Earths CEO, Darryl Cuzzubbo, expressed gratitude for the government’s support, noting that this investment demonstrates the successful execution of the company’s funding strategy.
The project, with an expected 38-year lifespan, has the potential for expansion and will play a crucial role in supporting the global energy transition and future technologies such as AI and robotics.
This investment by the NRFC is part of a broader strategy to strengthen Australia’s position in critical minerals processing and to support the country’s transition to net-zero emissions while creating secure, well-paying jobs in thriving new industries.
