Arafura Nolan’s rare earths project approved by NT government
Chief Minister Natasha Fyles has announced a major step forward for one of the Northern Territory’s key projects in the ambition to reach a $40bn economy. Read what it means for jobs, and the future.
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As the clock ticks toward a final investment decision, the Arafura Nolans project has been granted a key regulatory approval.
In a keynote speech at the NT News’ Future NT conference at Fannie Bay on Friday, Chief Minister Natasha Fyles announced the government had approved Arafura Rare Earth’s Territory mining operations.
“The Nolans Project will create 620 jobs during construction and 280 full time ongoing jobs once the mine is in production,” Ms Fyles said.
“Our resources industry is one of the biggest contributors to the NT economy and it is important that we support the development of new critical minerals projects in an appropriately regulated environment.”
Located about 130km north of Alice Springs, Arafura’s rare earths project has the potential to be one of the Territory’s most profitable mines.
A recent feasibility study put the project’s value about $2.4bn and capital expenditure at $1.6bn.
As well as the mine, the rare earths processing plant will be the first of its kind in Australia.
The approval means Arafura’s Mining Management Plan has been assessed by the Territory government and meets the requirements of the Mining Management Act.
The approval has taken into account NT Environment Protection Authority recommendations.
Arafura managing director Gavin Lockyer said the NT government approval acknowledged the “tremendous collaborative effort” and it was a great outcome for all parties.
“Our team has worked closely with the key regulatory teams in the Northern Territory to ensure the Nolans Project will meet or exceed all of the technical, social and environmental obligations required for this major resource project,” Mr Lockyer said.
“This project will be the first of its kind to be built anywhere in Australia and it will be constructed to deliver a product that is absolutely critical in the race to tackle climate change across the world.
“Because Nolans has very strong ESG credentials, it will set a benchmark for new Australian resource projects and as a result is attracting a great deal of interest from international investment groups.
“In years to come the development of the Nolans Project will deliver significant and direct benefits to Central Australia and the Northern Territory.
“It will also mean that the Northern Territory is recognised as one of the only sources of these very important critical minerals outside China.”
“This is the seventh significant mine approval in the past two years and helps further cement the Territory’s reputation as a globally-significant hub for resources and critical minerals,” she said.
“With 20 mining projects in the pipeline with a combined value at $7bn – our aim of a $40bn economy by 2030 is becoming a deadset reality.”
It has been a significant few weeks for Arafura, which announced in early November it had signed a binding offtake agreement with South Korean based Hyundai Motor Company to supply Neodymium and Praseodymium.
The seven-year deal, with a five-year option, could be worth about $200m annually to the company.
Under the agreement Kia Corporation, which is owned by Hyundai, can also access Arafura rare earths and Arafura has also entered into a non-binding Heads of Agreement to discuss a strategic investment with Hyundai and its affiliated companies.
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