Arafura Secures Conditional US$100M Investment for Nolans Project Expansion

Government-Backed Investment Signals Strategic Confidence

Arafura Rare Earths Limited (ASX – ARU) has taken a significant step forward with conditional approval from Export Finance Australia (EFA) for an equity investment of up to US$100 million. This funding is earmarked to advance the Nolans Project, a rare earths development in the Northern Territory that aims to become Australia’s first fully integrated ore-to-oxide processing facility.

The investment underscores the Australian Government’s commitment to bolstering the country’s critical minerals sector, a priority highlighted in recent policy initiatives such as the Future Made in Australia and the Critical Minerals Strategy 2023-2030. It also dovetails with the newly announced US-Australia Framework for Securing Supply in Mining and Processing of Critical Minerals and Rare Earths, reflecting a growing international focus on supply chain resilience.

Strategic Importance of the Nolans Project

Managing Director Darryl Cuzzubbo emphasized the project’s role in addressing global supply chain vulnerabilities exposed in recent years. With demand for both light and heavy rare earth elements forecast to surge over the next three decades, Nolans is positioned to capture a substantial share of this growth. The project’s integrated approach, from mining through to oxide production, aims to deliver responsibly sourced rare earth products to global manufacturing hubs.

This investment is not only a financial boost but also a strategic endorsement, placing Arafura among a select group of priority projects receiving government backing under the new Framework. The partnership with EFA and the Australian Government signals confidence in the project’s potential to contribute to a resilient and diversified supply chain for critical minerals.

Conditions and Next Steps

While the US$100 million equity injection is a major milestone, it remains conditional. The investment depends on satisfactory due diligence, finalisation of terms, shareholder approvals, and securing complementary debt and equity financing. Arafura has already secured debt commitments totaling US$533 million from Australian Government agencies and anticipates further investment from the National Reconstruction Fund Corporation.

As the company navigates these steps, the broader geopolitical context, marked by intensified cooperation between Australia and the United States on critical minerals, adds a layer of strategic complexity and opportunity. The final investment decision will be a key event to watch, potentially shaping the trajectory of Australia’s rare earths sector for years to come.