The company behind one of the country’s largest critical minerals projects says Australian banks find rare earths “outside their comfort zone”, making them reluctant to lend to projects.

Arafura Rare Earths is looking offshore for finance for its $1.6 billion Nolan project in the Northern Territory as it prepares for life without its long-time Chinese backer, and is expected to find support among government-backed credit agencies in Europe, North America and Asia.