• The National Reconstruction Fund Corporation (NRFC) has made its largest investment commitment to date - a $200 million cornerstone investment commitment in Arafura Rare Earths Limited (Arafura) to fund the development of the ‘Nolans Project’.
  • This significant commitment will help support Arafura to secure additional strategic investors and crowd-in additional funding. 
  • The Nolans Project is expected to produce around 4% of the world’s neodymium and praseodymium (NdPr) demand from 2032 and create more than 600 jobs during the construction phase and over 350 jobs during steady-state operations.

With a $200 million commitment from the NRFC, this transformational rare earth mine that is projected to supply around 4% of the world’s demand for NdPr resources is closer than ever to being built. 

The NRFC’s strategic investment commitment in Arafura is part of the company’s broader capital raise and will help enable the company to raise the remaining funds required to commence the project. This commitment is also expanding Australia’s access to strategic rare earth minerals whilst helping to facilitate employment opportunities including for Indigenous Australians and supporting development in the Northern Territory. 

The ‘Nolans Project’, which is located 135km north of Alice Springs in the Northern Territory, is expected to create more than 600 jobs during construction and around 350 jobs during steady-state operations, with opportunities for employment among the local Alice Springs and Indigenous communities. 

The project includes the construction of a mine, processing plant and related infrastructure that will produce 4,440 tonnes of NdPr oxide per annum over its proposed 38-year lifespan. These minerals are crucial to the global transition to net zero as they are key inputs for the industrial magnets used in the manufacturing of electric vehicles and wind turbines.

The Nolans Project will be Australia’s first ore-to-oxide rare earths processing operation and is expected to produce around 4% of the world’s forecast demand for NdPr. 

NRFC Chair Martijn Wilder AM said: “Rare earth minerals are strategically important resources that are crucial to modern economies and the global transition to net zero. Arafura’s Nolans Project demonstrates the enormous contribution that Australia can make to the global supply of rare earth minerals and the considerable opportunities for Australia to add value to the raw materials that it mines.”

The project’s location means that it will deliver considerable benefits to the local community, with Alice Springs to be used as the logistics hub for both the construction and operational phases of the project.

“The NRFC’s mandate emphasises the need to grow regional economies. The Nolans Project will do just that by delivering significant social and economic benefits to the people of Alice Springs and the Northern Territory. It is not only expected to create hundreds of local jobs, but also business opportunities for local SMEs, and the potential for shared regional infrastructure,” Mr Wilder AM said.

Arafura Managing Director and CEO Darryl Cuzzubbo said: 

“An investment of this significance by the NRFC highlights the importance of Arafura and the Nolans Project to Australian rare earths downstream processing capabilities and building resilience in a global supply chain. We are proud of this partnership with the NRFC and acknowledge their commitment and professionalism as we continue to move the Nolans Project closer to a final investment decision.”

The $200 million commitment from the NRFC is a significant investment milestone for the Nolans Project. The investment commitment, which is subject to satisfaction of conditions precedent, will provide a catalyst for the remaining funding required for the Nolans Project to reach development stage.

NRFC Chief Investment Officer Dr Mary Manning said: “The NRFC’s investment commitment in Arafura is transformational for the rare earths industry in Australia. Our cornerstone investment commitment in the Arafura capital raise will help to crowd-in additional investors and strategic partners. The NRFC is proud to support this transformational deal for a world-leading Australian resource company.”

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Media contact: media@nrf.gov.au

About the National Reconstruction Fund Corporation (NRFC)
The NRFC is Australia’s sovereign investor in manufacturing capability. It has $15 billion to invest through direct loans, equity investments and loan guarantees across seven priority areas: renewables and low emissions technologies; enabling capabilities; defence capability; transport; value-add in resources; value-add in agriculture, forestry and fisheries; and medical science. 

The NRFC’s role is to invest in Australian businesses and projects that design, refine and make to transform capability, grow jobs and a skilled workforce, and diversify our economy. The NRFC is a corporate Commonwealth entity, established by the National Reconstruction Fund Corporation Act 2023 (NRFC Act) in September 2023.

For more information, visit nrf.gov.au

About Arafura Rare Earths Limited (Arafura)
Arafura is an ASX-listed (ASX: ARU) mineral exploration company with offices in Perth and Darwin.

Arafura’s flagship project is the Nolans Project, a proposed neodymium and praseodymium (NdPr) mining and processing facility located 135 km north of Alice Springs.

Arafura’s proprietary flow sheet design technology will allow the company to adopt a single site ore-to-oxide production model that will position it as a leading global supplier of the rare earth metals critical to the transition to a low-carbon economy.

For more information, visit arultd.com(Opens in a new tab/window)