Northern Territory mining: Arafura Rare Earths’ Nolans Project gets $840m federal cash boost
The Commonwealth will provide up to $840m to help establish an “Australia-first” combined rare earths mine and refinery north of Alice Springs, to be operated by Arafura Rare Earths.
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Up to $840 million will be provided by the Commonwealth to establish a combined rare earths mine and refinery, Australia’s first such facility, in the Northern Territory.
Following Wednesday’s cabinet meeting in Darwin, Prime Minister Anthony Albanese greenlit the funding, which will be used to establish the facility 125km north of Alice Springs at Arafura Rare Earth’s Nolans Project.
According to Arafura, the project’s “cornerstone asset” is the Nolans Bore rare earths-phosphate-uranium-thorium deposit, which it describes as “one of the largest and most intensively explored deposits of its kind in the world”.
In addition, Arafura says Nolans also contains a “globally significant and strategic” reserve of neodymium and praseodymium (NdPr) which has the potential to supply a “significant proportion of the world’s NdPr demand”.
NdPr “is an element in high demand for environmentally friendly, high tech applications such as magnets for electric vehicles and wind turbine generators,” according to Investment Territory.
Arafura previously signed a binding seven-year NdPr offtake agreement with Hyundai Motor Company, with a five-year extension option.
The mine and refinery is expected to create more than 200 jobs during construction and 125 ongoing jobs – far fewer than the 620 construction jobs and 280 ongoing jobs predicted in December 2022.
Under Arafura’s Indigenous employment policy, up to 20 per cent of those are likely to go to First Nations employees.
In a statement, the federal government said the new rare earths mine and refinery would be a first of its kind in Australia.
“This groundbreaking investment will position Australia as a global leader in ethical and sustainable manufacturing of these minerals,” it said.
“Rare earths are used to make powerful magnets, and are an essential component in renewable energy and defence technologies.
“Electric vehicle motors, wind turbines, robotics and mobile phones are examples of the kinds of technologies that rely on rare earths.
“The government’s contribution will unlock further investment from international financiers and commercial banks, highlighting the value placed on this important investment.”
Arafura expects to raise an additional $550m USD from international partners, the federal government said, with the Commonwealth’s initial contribution of up to $840m required to “meet project financing needs”.
The $840m will be funded via multiple streams, including the Australian government’s Critical Minerals Facility, Northern Australia Infrastructure Facility, Export Finance Australia’s Commercial Account, and up to $30m in grants.
Mr Albanese described the investment as a “major vote of confidence in the Northern Territory, which continues to punch above its weight in global trade”.
“This will create local jobs and economic opportunities, helping Australian and Territory companies and workers capture more value from the game-changing critical minerals deposits we have here.”
Chief Minister Eva Lawler said the project was “an example of how this government is attracting investment into our critical minerals sector that will significantly contribute to the Territory’s role in energy transition and reducing greenhouse gas emissions”.
“Backed by record levels of investment into exploration, the mining and processing of critical minerals is a priority opportunity for the Territory to create more work opportunities for Territorians,” she said.
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