The Australian Government’s $15 billion National Reconstruction Fund Corporation (NRFC) will invest $200 million in Arafura Rare Earths (ASX:ARU) as a cornerstone investment.
The government funding will enable the company to press ahead with raising the remaining funds to start development of the new mine and processing facility at its Nolans Project site, 135km north of Alice Springs.
This Arafura investment is the single largest NRFC investment to date.
The facility will create 600 jobs during the construction phase with 350 ongoing jobs once mining and refining operations are up and running.
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.
Minister for Industry and Science Ed Husic says in just the last eight weeks, the fund has announced more than $360 million in deals with more to come.
“This investment will create a sovereign supply of these critical minerals, mined and refined onshore, as well as new export opportunities. And it means hundreds of secure, well-paid jobs for central Australia, including significant economic opportunity for First Nations communities,” the minister says
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.
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Images: Arafura
