Arafura Rare Earths (ASX:ARU) is in discussions with the German Raw Materials Fund (GRMF) regarding potential investment in its Nolans Project, located in the Northern Territory. The company has entered an appraisal phase with the GRMF, seeking up to €100 million (A$180.38 million) to facilitate an expansion of neodymium-praseodymium (NdPr) production by 500 tonnes per annum (tpa). This increase aims to meet growing demand from the German market, marking a significant boost to the initial €50 million investment. Arafura Rare Earths is an Australian exploration company focused on developing rare earth processing solutions for the global energy transition. Its Nolans Project is poised to become a key supplier of NdPr, essential components in clean energy technologies.
The application, initially submitted in October 2024, has been forwarded to the Interministerial Committee (IMC) for raw materials projects. An independent expert will conduct an inspection to assess the project’s economic viability and risk profile. Simultaneously, state-owned development bank KfW will evaluate crucial aspects such as offtake agreements, governance, environmental and social management practices, and overall financing structure. Arafura has already secured debt support from the IMC, including conditional approval for up to US$115 million in united loan guarantees from Allianz Trade (formerly Euler Hermes).
Germany’s commitment to securing critical raw minerals is evident through its €1 billion investment in the GRMF, announced in September 2024. This initiative encourages companies to strengthen supply chains and contribute to the German economy. The Nolans Project, situated 135km north of Alice Springs, aims to cater to a substantial portion of the increasing NdPr demand with its planned mine, processing plant, and associated infrastructure. The Nolans Bore deposit contains a JORC-compliant resource of 56 million tonnes at an average grade of 2.6% total rare earth oxides and 11% phosphate to a depth of 215m below the surface.
