Western Australian resources company Arafura Rare Earths will ramp up rare earths mining and create hundreds of jobs in Australia following support from the Albanese Government through the Critical Minerals Strategic Reserve.
The Government has committed $1.2 billion to establish Australia's Critical Minerals Strategic Reserve.
Following the Albanese Labor Government confirming the project will be eligible for the Critical Minerals Strategic Reserve, Arafura Rare Earths has today announced a Final Investment Decision on its Nolans rare earths project in the Northern Territory. The Government has provided a non-binding commitment to secure 500 tonnes of rare earths from the project, through the Reserve which has led to Arafura's announcement today.
The government commitment and Final Investment Decision means Arafura will now move to commence construction on the Nolans project, 135 kilometres north of Alice Springs, which will mine and process rare earths in Australia, creating 600 construction jobs and 350 ongoing jobs once operations commence.
Treasurer Jim Chalmers said the deal with Arafura which has led to the company's decision to expand rare earths mining operations in Australia was a win for workers and the nation's economic security.
"This is a win for workers and it's, a win for Western Australia and a win for the Northern Territory.
"It will deliver more jobs and opportunities for Australian workers and a more reliable supply of the resources we rely on.
"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, and our economic plan and our Budget will help ensure Australian workers and businesses are big beneficiaries of that."
Minister for Resources and Northern Australia Madeleine King said the announcement demonstrated the value of the Critical Minerals Strategic Reserve.
"Only weeks after the Albanese Government legislated the Critical Minerals Strategic Reserve, it has already brought a major Australian rare earths project to a Final Investment Decision," Minister King said.
"The Nolans project is a major step forward for Australia's rare earths industry. It means construction jobs in the Northern Territory, ongoing regional employment and a stronger sovereign capability in minerals that are essential to clean energy, advanced manufacturing and defence."
Trade Minister Don Farrell said the Albanese Labor Government is using the full strength of our financing capability to turn our critical minerals ambitions into real projects, real jobs and stronger supply chains
"Our Critical Minerals Strategic Reserve is helping provide the certainty projects like Nolans need to reach investment decisions, while strengthening the access to reliable sources of rare earths for Australia and our partners," Minister Farrell said.
The Nolans project will produce neodymium-praseodymium oxide, or NdPr, a critical input for high-performance permanent magnets used in electric vehicles, wind turbines, advanced manufacturing and defence technologies.
Once operational, the Nolans Project is projected to supply approximately 4 to 5 per cent of global rare-earth demand, making significant inroads to building an alternative supply chain in products that have been the subject of supply bans and disruptions
Arafura Rare Earths will work closely with the Australian Government to direct Strategic Reserve offtake to strategic partners and allies, to help diversify global rare earths supply chains.
Arafura already has additional offtake agreements with European, Korean and North American counterparts, and the project has attracted strong backing from key international partners, including support from the export credit agencies of the United States, Canada, Germany and the Republic of Korea, as well as support from the Commonwealth Bank of Australia and Hancock Prospecting.
The Australian Government has already invested approximately $140m in a cornerstone equity investment in Arafura under the Australia-US Critical Minerals Framework Agreement and committed to provide the project with up to $700m in debt.
The Albanese Government's focus is building a stronger, more resilient economy that works for more people and our efforts to strengthen supply chains and create jobs through the Critical Minerals Strategic Reserve is an important part of that.
