Arafura Resources and Alcoa Corporation are set to be the initial beneficiaries of the recently signed US-Australia minerals deal. The agreement, facilitated by both the US and Australian governments, will see substantial investment in critical minerals projects across Western Australia and the Northern Territory. Following the announcement, shares in Arafura Resources saw an increase of 18.5%, while Alcoa experienced a decrease of 1.3%.
The Australian government will invest hundreds of millions into key projects. These investments are part of a broader $13 billion initiative to bolster critical minerals production within Australia. The focus is on securing supply chains and developing domestic processing capabilities for resources vital to various industries.
Specifically, Alcoa will receive $307 million for the Alcoa-Sojitz Gallium mining study at Wagerup in Western Australia. This project is a joint venture with the Japanese trading house Sojitz and aims to produce gallium at Alcoa’s alumina refinery. Alcoa is a global company which produces bauxite, alumina and aluminum products.
In the Northern Territory, $154 million will be allocated to Arafura’s Nolans rare earths project. Arafura Resources is focused on the extraction and processing of rare earth elements. The funding will support the development of a mine and processing plant for rare earths, including thorium, neodymium, and praseodymium.
