Arafura Rare Earths on Thursday approved the development of its Nolans project in Australia’s Northern Territory, committing to a A$1.6 billion-funded build intended to make Nolans the country’s third-largest rare earths operation by the end of the decade.
Market reaction was immediate. Arafura shares climbed as much as 13.6% to A$0.335 in their strongest intraday advance since March 11. At 0215 GMT the benchmark stock index was up 0.9%.
Financing and offtake
The company said it has secured financing commitments from the export credit agencies of the United States, Canada, Germany and South Korea, together with support from global trading houses and manufacturers. Arafura has lined up supply agreements with South Korean automakers Hyundai and Kia, Germany’s Siemens Gamesa RE, and Traxys’ Luxembourg and U.S. units.
Arafura described the funding package as $1.6 billion with a significant buffer. The package is backed in part by Hancock Prospecting, owned by Gina Rinehart, which holds a 15.5% stake in the company.
Production profile and ranking
The Nolans project is designed to produce 4,440 metric tons annually of neodymium-praseodymium (NdPr) oxide, with an explicit focus on supplying markets outside China. That output would place Nolans behind Lynas Rare Earths, which produced 6,600 metric tons in the last financial year, and Iluka, which has 5,500 tons of NdPr capacity and is expected to start next year.
Arafura has committed to supplying 500 tons of NdPr to Australia’s strategic minerals reserve, which the company says is scheduled to be operational by year-end.
Timeline, contractors and decision path
Construction is planned to begin in September, with first production targeted for mid-2029. Arafura engaged engineering contractor Hatch to support the project development. The final investment decision followed a multi-year process of arranging financing and securing offtake commitments.
Context and implications
The Nolans project targets rare earths used in electric vehicles and wind turbines by producing NdPr oxide for customers outside China. The approval and financing structure involve several export credit agencies and commercial counterparties, reflecting a coordinated funding and offtake approach.