Rare Earth Mining and Processing Planned at a Single Site in Northern Australia
Arafura Rare Earths has made the final investment decision for its Nolans Project rare earths development in Australia’s Northern Territory. The company will now move into the pre-construction phase, with major construction works scheduled to begin in September 2026. Nolans is expected to become Australia’s first fully integrated rare earths operation capable of processing material from ore to oxide at a single location.
The investment decision follows a series of financing and offtake milestones, including support commitments from Export Finance Australia, the National Reconstruction Fund Corporation, and Germany’s raw materials fund. Arafura positions Nolans as a strategic contributor to Western supply chains for magnet rare earths, which are essential for electric vehicles, wind turbines, and advanced technology applications.
On the commercial side, Arafura points to long-term offtake agreements with Hyundai Motor Company, Kia Corporation, Siemens Gamesa, and Traxys across Europe and North America. Together with a letter of support from Export Finance Australia, these agreements already cover 93 percent of the company’s targeted binding offtake volume, according to Arafura. However, not all arrangements have been fully finalized: the EFA support letter is non-binding, and additional negotiations with manufacturers in Germany and elsewhere in Europe are still ongoing.
Several steps also remain before construction can officially commence. Arafura must still finalize financing agreements, secure shareholder approvals, and award key construction contracts. The company also intends to keep part of its future production available for spot market sales.
Photo: Alexander Baranov via Canva
