Case study: Arafura Rare Earths Limited

Powering the future of electrification and technology

ASX-listed Australian mineral developer, Arafura Rare Earths Limited (ASX:ARU), is developing the Nolans Rare Earths Project.

Background

The cornerstone of the project is one of the world’s largest undeveloped Neodymium and Praseodymium (NdPr) resources, 135 km north of Alice Springs.

With an initial mine life of 38 years, and a valuable phosphoric acid by-product, Nolans will be a long life, low-cost operation producing NdPr oxide – a critical component for high performance magnets used in the manufacture of electric vehicles, consumer electronics, and renewable energy including wind turbines. Demand for NdPr is expected to double by 2032, driven by the boom in robotics and AI technologies.

The Nolans project encompasses a mine, process plant (comprising beneficiation, extraction, and separation plants) and related infrastructure.

Opportunity

Rare earths are essential to achieving a lower carbon future and supporting the global energy transition. Arafura has significantly advanced the project to position Nolans as a globally significant future producer of NdPr and is targeting Financial Investment Decision (FID) in 2025.

Approach

The technical and economic viability of Nolans has been demonstrated through extensive studies including a four-year metallurgical piloting program and definitive feasibility study.

In 2023, Arafura invested more than A$40 million to complete the early works construction and become shovel ready. Main construction activities are ready to commence immediately upon FID.

Arafura is fully engaged with its community stakeholders, having established a strong relationship with the Traditional Owners.

Solution

Arafura has substantially advanced the project, securing all government and regulatory approvals to commence.

In July 2024, Arafura reached a significant milestone, achieving conditional approval for more than US$1 billion in debt funding and completion support. It is now focused on securing the strategic equity funding required for FID.

On 15 January 2025, Arafura announced a binding term sheet with the Australian Government, through the National Reconstruction Fund Corporation (NRFC), for an equity investment commitment of A$200M, which positions it closer to FID.

Arafura has also completed a preliminary study on a Phase 2 expansion of Nolans, which could potentially enable an increase in processing throughput, and the opportunity to become a third-party processing hub for other Australian rare earth companies.

Outcomes

Nolans is on track to be Australia’s first integrated ore-to-oxide rare earths mine and processing facility, producing 4,440 tonnes of NdPr oxide per year.

This multi-generational project will deliver substantial benefits to the Northern Territory economy over a 38 year+ mine life, with 600+ construction jobs forecasted and a 350+ strong operational workforce.

Additionally, Nolans is a strategic geopolitical asset as demonstrated by its funding strategy. Arafura will benefit from the proximity of Nolans to global markets.

At-a-glance