Arafura Approves $1 billion Nolans Rare Earths Project in Australia

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Written by Martin Lynch, European News Editor for IIR News Intelligence (Sugar Land, Texas)

A final investment decision (FID) has been taken to progress the Nolans rare earths project in central Australia, following a key offtake deal signed with the federal government.

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Summary

Australian minerals developer Arafura Rare Earths is to begin construction on one of Australia's most important rare earths projects having secured a major government offtake deal. 

Push for Minerals

The government's Export Finance Australia (EFA) initiative has agreed to purchase 500 tonnes per year (t/yr) of neodymium-praseodymium oxide (NdPr) from the US$1 billion Nolans project. NdPr is used in small rare earth permanent magnets (REPM), which are critical components for electric vehicles (EVs), wind turbines, robotics and defense applications. According to Industrial Info Resources data, there are 11 active Nolans projects worth more than US$1 billion in investment. 

The guarantee forms part of the country's Critical Minerals Strategic Reserve plan, announced earlier this year, which will see the government buy and stockpile strategic critical minerals to boost its position as a global supplier to allied countries and to reduce its own reliance on China. The commitment helped push the project above the 80% offtake threshold needed to make the Final Investment Decision (FID). Construction will take 30 months with first production in 2029. Subscribers to the Industrial Info Resources Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for the Nolan project reports. 

Project Estimates

The Nolans mine, located 135 kilometers north of Alice Springs in central Australia, has an estimated total capacity of 4,870 t/yr of rare earths, comprising 4,440 t/yr of NdPr--around 4% of global supply--and up to 470 t/yr of mixed medium-heavy rare earth oxide and 144,000 t/yr of 54% P2O5 (diphorus pentoxide) fertilizer-grade phosphoric acid. The mine site was first flagged as a prospect decades ago but has seen its realization accelerate quickly thanks to substantial public backing from investors such as multi-billionaire Gina Rinehart. The mine was also cited as a priority in a trade deal brokered last year between the U.S. and Australia. Arafura has secured offtake deals with South Korean car manufacturers Hyundai and Kia (1,500 t/r), Germany's Siemens Gamesa (520 t/y) and metals commodity trader Traxys Europe/North America (800 t/y).

Government Backing

Australian Treasurer Jim Chalmers called the deal a "win" for workers and the country. "This is a win for workers and it's a win for Western Australia and a win for the Northern Territory. The world needs critical minerals, Australia has plenty of them, and  we're helping workers and businesses make the most of this big opportunity. Everyone benefits from stronger and more stable critical minerals supply chains, but especially Australia, and that's what the Critical Minerals Reserve is all about. Australia has exactly what the world needs, when the world needs it."

Darryl Cuzzubbo, chief executive officer of Arafura, said: "When we look at the architecture of this project--Australian ore, Australian and European processing technology, Korean, European and American end-users, with the full weight of the Australian Government and alliances behind us--what we are building is not just a mine. We are building a template for how sovereign aligned supply chains can be constructed when governments and industry move together with shared purpose."

Critical Minerals Strategic Reserve

Later this year, Australia will launch its Critical Minerals Strategic Reserve, designed to stockpile critical minerals to bolster its own supply but to also act as a trading conduit for allied nations. The first minerals to be focused on include antimony, gallium and rare earth elements--all of which are now largely controlled by China. In the past year, Australia has signed agreements with the European Union (EU), the U.S. and Canada among others with regard to supplying critical minerals in return for financing Australian projects. For additional information, see January 16, 2026, article--Australia to Stockpile Critical Minerals. Last year, the  government introduced the Critical Minerals Production Tax Incentive, designed to cover 10% of the relevant processing and refining costs for Australia's 31 critical minerals, over the period 1 July 2027 to 30 June 2040. The critical minerals incentive is valued at A$7 billion (US$4.5 billion) over its lifetime. For additional information, see March 5, 2025, article - Australia Introducing Tax Credits for Green Hydrogen, Critical Minerals.

Key Takeaways 

• Arafura Rare Earths has green-lit its US$1 billion Nolans rare earths project following an offtake deal with the government.
• It will produce 4,440 tonnes per year (t/yr)  of neodymium-praseodymium oxide (NdPr)--around 4% of global supply.
• Industrial Info Resources is tracking 11 active Nolans projects worth more than US$1 billion in investment. 

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).

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