Investments from the German raw materials fund and Export Finance Australia finalized.
Australian mining company Arafura Rare Earths has secured binding cornerstone equity commitments totaling approximately $159 million (A$230 million), marking a key step toward fully funding its Nolans rare earths project in Australia’s Northern Territory.
The agreements include €50 million (~A$84 million) from Germany’s KfW, acting on behalf of the German Raw Materials Fund, and $100 million (~A$146 million) from Export Finance Australia.
The deals convert earlier non-binding arrangements into firm commitments, lifting Arafura’s total secured funding. Proceeds will support the development of Nolans, which aims to become Australia’s first integrated rare earths mining and processing operation, targeting 4,440 tons per year of neodymium-praseodymium (NdPr) oxide from 2029. This material is a key precursor to rare earth magnets.
Companies such as Hyundai, Kia, and General Electric have already expressed interest in Arafura’s rare earth products. Additionally, the company has a supply agreement in place with wind turbine manufacturer Siemens Gamesa.
Photo: Vlad Chețan, Billion Photos via Canva, montage rawmaterials.net