Arafura Rare Earths Limited (ASX: ARU) has announced it has received conditional approval from Export Finance Australia (EFA) for an equity investment of up to US$100 million. Arafura Rare Earths is focused on the development of the Nolans Project in the Northern Territory to produce rare earth oxides. The company aims to be Australia’s first fully integrated ore-to-oxide rare earths processing facility, committed to responsibly mined and processed products for global customers.
The investment highlights the strategic importance of the Nolans Project in the development of Australia’s rare earths sector. It also aligns with Australian Government policy initiatives such as the Future Made in Australia plan, the Critical Minerals Strategy 2023-2030, and the US-Australia Framework for Securing Supply in the Mining and Processing of Critical Minerals and Rare Earths.
According to Arafura’s Managing Director and CEO, Darryl Cuzzubbo, the investment underscores the urgent need for a robust rare earth sector. He noted recent disruptions to global trade and supply chains, stating the Nolans project is well-positioned to meet the anticipated future growth in demand for both light and heavy rare earths. He added that the collaboration with EFA and the Australian Government demonstrates global leadership in the sector.
EFA’s investment remains subject to satisfactory due diligence, finalisation of investment terms, execution of definitive documentation, shareholder approvals, and securing commitments for debt and equity funding. This equity investment complements previously announced debt commitments of US$533 million from Australian Government Agencies, and Australia’s National Reconstruction Fund Corporation’s future A$200m investment.
