The Australian Government’s National Reconstruction Fund Corporation (NRFC) will invest $200 million in Arafura Rare Earths to help build Australia’s Future.
The NRFC’s funding commitment into Arafura Rare Earths is a cornerstone investment, enabling the company to press ahead with raising the remaining funds required to commence development of the new mine and processing facility at its Nolans Project site, 135 kilometres north of Alice Springs.
The facility will create 600 jobs during the construction phase with 350 ongoing jobs once mining and refining operations are up and running.
“This investment will create a sovereign supply of these critical minerals, mined and refined onshore, as well as new export opportunities,” says Minister for Industry and Science Ed Husic.
“We’re backing in our strength in mining, while helping lower emissions and bolstering our supply chains.”
Rare earth minerals are integral for the manufacture of magnets that go into products such as wind turbines, electric vehicles and defence equipment.
Demand for processed rare earth minerals is expected to double by 2030, with the current market currently dominated by a single supplier.
The mine and processing plant will produce around 4,440 tonnes of neodymium and praseodymium (NdPr) – which will account for around four percent of global demand from 2032.
It will be the first of its kind in Australia and one of the largest in the world, a game changer for the Northern Territory.
This commitment from the NRFC builds on combined funding from the Critical Minerals Facility and the Northern Australia Infrastructure Facility.
Since November, the NRFC has announced more than $360 million in funding commitments as part of a strong pipeline of investments.
The Arafura Rare Earth investment is the single largest NRFC investment to date.
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