Arafura Rare Earths Limited (ARU), an Australian company focused on developing its rare earth business, has announced it has received a non-binding Letter of Interest (LOI) from the Export-Import Bank of the United States (US EXIM) to support its Nolans Project in the Northern Territory. Arafura Rare Earths is an Australian company focused on developing its rare earth business through the construction and operation of the Nolans Project. The company’s integrated ore-to-oxide strategy aims to deliver critical rare earth oxides directly to the US supply chain.
According to preliminary discussions, US EXIM is considering providing up to US$300 million in financing support. This would supplement Arafura’s existing project financing package and is conditional on cooperation with Export Finance Australia (EFA) under the EXIM-EFA Single Point of Entry. The Nolans Project qualifies for funding under US EXIM’s Supply Chain Resiliency Initiative (SCRI), predicated on the potential sale of rare earth products to US buyers. US EXIM’s support remains subject to customary terms and conditions, including the completion of due diligence.
US EXIM Chairman John Jovanovic stated that the Letter of Interest reflects their commitment to strengthening US national security, enhancing supply chain resilience, and revitalizing domestic manufacturing. He highlighted the collaboration between American industry and Australian mining initiatives in bolstering America’s industrial innovation and ensuring reliable access to critical minerals. Arafura’s CEO, Darryl Cuzzubbo, noted that the support demonstrates a proactive approach to developing a diversified rare earth supply chain and downstream manufacturing capability.
The additional funding, on top of the company’s existing US$1.05 billion debt package, will allow the company to evaluate accelerating increased capacity to accommodate additional third-party ore processing infrastructure, Heavy Rare Earths (HRE) feedstock and potential HRE separation. Heavy Rare Earths are critical for NdFeB magnet performance and are a highly strategic feedstock for US industrial and military applications.
