Australia's Nolans Rare Earths Project, by Arafura, could potentially secure AU$100 million in funding from Export Finance Australia.
Australia could potentially take a significant step towards becoming a global leader in the rare earths sector, according to Arafura Rare Earths' Managing Director and CEO. This assertion comes in light of a non-binding letter of interest from Export Finance Australia (EFA) indicating a potential investment of around AU$100 million to support Arafura Rare Earths' Nolans rare earths project as of August 2025.
This funding, expected to significantly strengthen the project's financial position, could potentially cover about 60% of the AU$775 million equity requirement needed to fully develop Nolans. This investment would be in addition to AU$200 million from the National Reconstruction Fund Corporation and AU$840 million committed by the Australian federal government since early 2024, bringing total public funding for Nolans to approximately AU$1.1 billion.
Located 135 kilometres north of Alice Springs in Australia's Northern Territory, the Nolans project is recognized as the country's first integrated rare earth mine and processing refinery. It aims to provide a secure and reliable supply of critical rare earth elements like neodymium and praseodymium, accounting for about 4% of the global demand. The project aligns closely with Australia's Critical Minerals Strategy and the G7 Critical Minerals Action Plan, underpinning its strategic importance for domestic supply chain security and reducing reliance on Chinese rare earth processing.
The potential impact of EFA's funding and broader government support includes enhancing financial certainty for Nolans, advancing supply chain sovereignty, positioning Australia as a key player in global rare earths markets, encouraging international partnerships, and supporting technology transfer, investment, and supply chain resilience.
While the letter from EFA is non-binding, Arafura is advancing due diligence and negotiations with EFA and other potential investors like Germany’s Raw Materials Fund to finalize formal funding agreements. The ongoing engagement with Export Credit Agencies and commercial lenders, with credit approvals maintained and being extended through mid-2025, demonstrates active progress towards project financing closure.
The development of Nolans aligns with Arafura Rare Earths' aim to support the development of secure and reliable supply chains with key international partners. The Nolans project is considered the world's most advanced ore-to-oxide rare earths project by Arafura Rare Earths. It is also the only NdPr-focused project in Australia with complete environmental permitting for mining, beneficiation, extraction, and separation of rare earths.
As the world increasingly relies on technologies powered by rare earth elements, the strategic importance of projects like Nolans cannot be overstated. With potential investments from Export Finance Australia, the National Reconstruction Fund Corporation, the federal government, and the German Raw Materials Fund, the development of Nolans represents a significant step towards global supply chain diversification and Australia's emergence as a leader in the rare earths sector.
- The potential investment of AU$100 million from Export Finance Australia (EFA) to support Arafura Rare Earths' Nolans rare earths project could significantly strengthen the project's financial position and aligns closely with Australia's Critical Minerals Strategy.
- The funding, if secured, would cover about 60% of the AU$775 million equity requirement needed to fully develop Nolans, and positions Australia as a key player in global rare earths markets.
- With potential investments from various sources, including EFA, the National Reconstruction Fund Corporation, the federal government, and the German Raw Materials Fund, the development of Nolans represents a significant step towards global supply chain diversification and Australia's emergence as a leader in the rare earths sector.
- The ongoing engagement with Export Credit Agencies and commercial lenders, as demonstrated by the non-binding letter of interest from EFA, is crucial for project financing closure and supports technology transfer, investment, and supply chain resilience.
