The NRFC is making a $200 million investment commitment in Arafura Rare Earths Limited (Arafura) to help finance the Nolans Project in the Northern Territory. The project will be Australia’s first ore-to-oxide rare earths processing operation and is expected to produce around 4% of the world’s neodymium and praseodymium (NdPr) demand from 2032.
The NRFC’s investment will create more than 600 jobs during construction and around 350 jobs during steady-state operations, generating economic activity in the Alice Springs region and opportunities for employment among the local Alice Springs and Indigenous communities.
The NRFC’s $200 million cornerstone commitment is part of Arafura’s broader capital raise and will help catalyse the raising of the remaining funds required to commence project development.
The NRFC’s investment commitment will also help improve Australia’s supply chain resilience by producing up to 4% of the world’s demand for NdPr. These minerals are a key component to the net zero energy transition.
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 operation is the Nolans Project, a proposed mine and processing facility located 135 km north of Alice Springs in the Northern Territory that will produce the rare earth minerals NdPr. 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 produce 4,440 tonnes of NdPr oxide per annum over its proposed 38-year lifespan, which will account for around 4% of the world’s demand from 2032. Arafura has binding offtake agreements with Hyundai/Kia and Siemens Gamesa Renewable Energy.
The NRFC’s investment commitment in Arafura is part of the company’s broader capital raise, which will allow the company to proceed with the development of the NdPr mine, processing facility and related infrastructure.
Arafura has developed proprietary flow sheet design technology, which will allow the company to adopt a single site ore-to-oxide production model that will position Arafura as a leading global supplier of the rare earth metals critical to the transition to a low-carbon economy.
Investment impact
Attracting private finance
The NRFC’s investment commitment in Arafura will help cornerstone the company’s broader capital raise. The NRFC’s commitment is intended to crowd-in the remaining capital required via the ASX, overseas investors and customers, and from existing strategic partners.
Job creation
The Nolans Project 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.
Advancing regional development
The project’s location means that it has significant potential to deliver social and economic 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. This includes business opportunities for local SMEs, royalties for the Northern Territory and the potential for shared infrastructure.
Supply chain resilience
The Nolans Project will increase Australia’s self-sufficiency by significantly boosting supply of NdPr and separated rare earth materials and increasing our domestic processing capabilities.
Growing industrial capability
The Nolans Project will be Australia’s first ore-to-oxide rare earths processing operation. This adds significant value to the resource produced and increases domestic refining capabilities.