RareX’s Historic Deal with Jaru Eases Risks but Raises Future Challenges

A Historic Milestone for Cummins Range

RareX Limited (ASX, REE) has reached a significant milestone by signing a Mining Heritage Protection Agreement with the Jaru people, traditional owners of the land encompassing the Cummins Range rare earths, gallium, scandium, and phosphate project. This agreement, the first mining pact since the Jaru native title determination in 2018, represents a crucial step toward securing a Mining Lease and advancing the project’s development.

The Cummins Range project, wholly owned by RareX, is positioned as Australia’s largest undeveloped rare earths deposit, with promising deposits of magnet-grade rare earths and battery-grade phosphates. The agreement not only formalises the relationship between RareX and the Jaru community but also provides a framework for economic participation, including royalties, business opportunities, and employment prospects for the Jaru people.

Navigating Complex Negotiations

The path to this agreement was marked by extensive community engagement, legal support, and negotiation. RareX was assisted by legal firm Allens, while the Jaru were supported by Indigenous lawyer Shaz Rind. The process was conducted directly with the Jaru’s nominated negotiation committee, reflecting a commitment to open and fair dialogue without intermediaries.

Jaru leaders expressed optimism about the agreement, highlighting its potential to bring lasting social and economic benefits to their community while ensuring the protection and care of their traditional lands. For RareX, this agreement de-risks the project by addressing heritage and environmental considerations, thereby enhancing stakeholder confidence and paving the way for regulatory approvals.

Performance Rights and Royalty Framework

Under the terms of the agreement, RareX will issue performance rights to the Jaru community, including 5 million rights upon execution, 2.5 million upon a final investment decision, and another 2.5 million when commercial sales exceed 100,000 metric tonnes. Additionally, a royalty based on production will provide ongoing financial benefits to the Jaru people, aligning their interests with the project’s success.

This structured approach to community engagement and benefit sharing is increasingly seen as essential in the mining sector, particularly for projects on native title lands. It signals RareX’s commitment to responsible development and sets a precedent for future agreements in the region.

Looking Ahead

With the Mining Heritage Protection Agreement in place, RareX is now better positioned to finalise its development plans for Cummins Range, leveraging ongoing metallurgical studies and technical work. The company’s broader portfolio, including projects like Mt Mansbridge and Khaleesi, continues to underpin its strategy in critical minerals essential for emerging technologies.

As RareX moves toward securing the Mining Lease and advancing project milestones, the agreement with the Jaru people stands as a testament to the value of collaborative, respectful partnerships in unlocking Australia’s critical mineral potential.