Arafura Rare Earths Limited
Nolans Bore Rare Earths Project
The Nolans Bore Rare Earths Project comprises the development of a rare earths mine and processing facilities (including beneficiation, extraction, and separation plants) 135km north of Alice Springs in the Northern Territory.
Investment Decision
January 2024
Sector
Resources
Location
Northern Territory
LOAN DETAILS
Naif loan amount up to
$200m
Total Project Value
$2.6bn
Length of loan
15 years
PUBLIC BENEFIT
Total public benefit
$1.4bn
FORECAST JOBS
334
Project Status
Investment Decision
The Nolans Rare Earths Project comprises the development of a rare earths mine and processing facilities (including beneficiation, extraction, and separation plants) 135km north of Alice Springs in the Northern Territory.
About Arafura Rare Earths
Arafura Rare Earths Ltd (Arafura) is an Australian resources company, with offices in Perth and Darwin. The company’s main asset is the Nolans Rare Earths Project (Nolans or the Project) in the Northern Territory.
Project overview
Nolans Bore Rare Earths Project will mine and process one of the world’s largest deposits of Neodymium (Nd) and Praseodymium (Pr) over a mine life of at least 23 years. The Project uses a proprietary flowsheet to produce separated Nd and Pr oxides, as well as phosphoric acid as a by-product, thus improving project economics. NdPr are essential raw materials for ultra-strong permanent magnets used in the motors of electric vehicles, wind-turbine generators, smart phones and robotics.
How we helped
Rare earths projects, such as Nolans, have faced difficulties in accessing commercial debt funding as rare earth markets are relatively opaque with a history of significant price volatility.
This is an opportunity for NAIF to support the development of a strategically important project which will mark a significant step in establishing a rare earth ecosystem in Australia. Government support of this project sends a positive message to strategically aligned countries/regions looking to source rare earth materials from Australia and may encourage additional investment in mid-and downstream processing.
This project will be the first major project constructed in the Northern Territory since development of the Ichthys LNG Project by INPEX in 2018.
IES Commitments
Employment
20% (up to 20% over life of project)
Indigenous Engagement
Traditional owners of this land
- Anmatjere
The Anmatjere people are the Traditional Owners of the land where this project is located.
- Arafura has created an Indigenous Engagement Strategy (IES) focusing on local Indigenous participation, procurement, training and employment.
- The strategy includes an ambitious Indigenous employment target of up to 20% over the life of the project.
- To reach this goal, Arafura plans to implement a regional workforce strategy, a Graduate Development Program, and a Vocational Education and Training in Schools program. The education program aims to provide work experience in mining-related fields for Indigenous students in Central Australia.
- Arafura will require all tenderers to submit a plan for their utilisation of Indigenous businesses and set a target for Indigenous participation.
- The overall objective is to maximise opportunities for local Indigenous peoples in the Nolans Bore Rare Earths Project.
