Arafura Resources gets $30m funding boost for Nolans project in Central Australia

Australia’s first rare earth separation plant is a step closer to becoming a reality with a federal funding announcement of $30m for the project.

AUSTRALIA’S first rare earth separation plant is a step closer to becoming a reality with a federal funding announcement of $30m for the project.

Arafura Resources’ flagship Nolans Project near Aileron, in Central Australia will leverage mineral processing expertise to develop rare earth separation technology not currently available in Australia.

The federal government says the project, which is $90.8m in total, will create 650 jobs at the peak of construction and drive new high-value export opportunities.

Announcing a range of mineral sector projects on Wednesday, Prime Minister Scott Morrison said the investments were key to securing manufacturing in Australia and the thousands of jobs that come with those industries.

“Projects like these make for a stronger economy and a stronger future for Australia,” Mr Morrison said.

“These projects are about manufacturing the products and materials Australians need and the world needs, by making them right here at home.

Progress under way for the $90.8m Arafura Resources Nolans Project.

“We’re helping grow the local critical minerals processing and clean energy industries and locking in the future of those industries by backing manufacturing projects in Australia.”

On Wednesday, Arafura’s share price rose more than 15 per cent as the market reacted to the funding announcement.

Arafura Resources managing director Gavin Lockyer said the boost was an exciting milestone for Arafura and recognised the strategic significance of the Nolans Project.

“Nolans is a globally significant rare earths project that will harness one of the world’s biggest NdPr (neodymium and praseodymium) resources,” he said.

“It will be Australia’s first vertically integrated project of its kind and world’s second biggest non-China source of rare earths, processing on site to meet more than 5 per cent of global demand.

“Rare earths are critical to the manufacture of electric vehicles and wind turbines, with demand growth forecast to be exponential in coming decades.

“Australia has a window of opportunity to invest in strategically important rare earths projects such as Nolans and maximise the local jobs and investment benefits of the clean energy revolution.”

Originally published as Arafura Resources gets $30m funding boost for Nolans project in Central Australia