Australian Government to commit $840m to develop the Nolans rare earths project

The Australian Government will be committing up to $840 million towards the development of Arafura Rare Earths Limited’s Nolans Project in the Northern Territory. 

This landmark investment is expected to position Australia as a global leader in ethical and sustainable manufacturing of rare earths minerals. 

“Gaining this level of support from the Commonwealth Government is a critical milestone in becoming a globally significant producer of NdPr, a product essential for electric vehicle and wind turbine manufacturers to achieve future growth targets as part of the energy transition. 

“Being able to secure these debt terms reflects the quality of the Nolans Project. It brings us significantly closer to making a final investment decision and contributing to a lower carbon future,” Arafura Rare Earths Limited Managing Director and CEO Darryl Cuzzubbo said. 

“The Northern Territory is on the cusp of an economic boom and we are ensuring Territorians reap the rewards. 

“Today’s announcement highlights the importance of the NT’s critical minerals sector to Australia, a sector which will drive us towards our goal of a $40 billion economy of 2030,” NT Minister for Mining Mark Monaghan said. 

Not only will this significant investment secure Australia’s position as a renewable energy superpower, but it will also create hundreds of local jobs for the region. 

The project is estimated to create more than 300 new jobs across the Northern Territory while diversifying the critical minerals supply chain. During construction, the project will create over 200 jobs and a further 125 full-time ongoing jobs, including an ambition of securing 20 per cent local Indigenous employment. 

“Creating more work opportunities for Territorians now and into the future is the priority of the Territory Labor Government. 

“The Commonwealth’s commitment for Arafura’s rare earths mine and refinery will help us achieve that. It will create approximately 200 jobs during construction, and 125 ongoing local jobs in Central Australia. 

“Arafura’s project is 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,” NT Chief Minister Eva Lawler said. 

Project map (source: Arafura Rare Earths Limited)

The Nolans Project will be located about 125 kilometres north of Alice Springs. It will be the nation’s first combined rare earths mine and refinery – the first of its kind – and it is an ambitious step forward for the local rare earths and critical minerals industry. 

The project is Australia’s first vertically integrated rare earths operation where a single site mining and processing (including waste disposal) will provide a secure and traceable supply chain that will meet the domestic and global economic and security interests as well as the ESG needs of global customers. 

“Australia’s critical minerals will be crucial to the new low-emissions technologies that will help lower emissions and our trading partners to meet their climate goals. 

“The combined funding from the Critical Minerals Facility and the NAIF will help Australia build downstream industries and support our goal to become a renewable energy superpower by 2030. 

“To meet our net zero targets, we will need more mining, not less, to build the solar panels, batteries and wind farms we need to reduce emissions,” Minister for Resources and Minister for Northern Australia Madeleine King MP said. 

Rare earths are used to create powerful magnets and are essential components in renewable energy and defence technologies. Some examples of technologies that rely on rare earths include electric vehicle motors, wind turbines, robotics and mobile phones. 

The funding contribution from the Australian Government will help unlock further investment from international financiers and commercial banks, highlighting the value places on this vital investment. 

“Our Government is committed to unlocking new critical minerals projects to help us become a renewable energy superpower, and create hundreds of local high-paying jobs in the industries of the future. 

“We have some of the largest deposits of critical minerals in the world and through this project, we’re encouraging more international partners like the Republic of Kore and Germany to invest in Australia and diversify global supply chains. 

“International buyers and investors are key to developing our abundant critical minerals opportunities, which is why we are also building strong partnerships with major economies,” Minister for Trade and Tourism Senator Don Farrell said. 

The Federal Government is staying committed to a future made in Australia and this commitment has seen the expansion of the Critical Minerals Facility and the Northern Australia Infrastructure Facility to a combined $11 billion. 

Critical minerals are the building blocks for a clean energy future and the Australian Government has become a major investor and partner of this important sector that creates jobs and opportunities for more Australians. 

“My Government is focussed on a future made in Australia, and this project is an important part of that plan. 

“We will deliver critical jobs and economic development in the heart of the Territory and the north. 

“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. 

“This project is a major vote of confidence in the Northern Territory, which continues to punch above its weight in global trade. 

“The road to net zero runs through Australia’s resources sector and the development of our critical minerals sector will play a key role,” Prime Minister Anthony Albanese said. 

Source: Northern Territory Government Newsroom; Arafura Rare Earths Limited (1, 2); ABC News; Australian Mining