Arafura Rare Earths Gives Nolans the Go-Ahead as Export Finance Australia Closes Final Funding Gap

Arafura Rare Earths gives final investment decision for Nolans rare earths project in Australia, backed by state lenders and offtake deals with Hyundai, Kia, and Siemens Gamesa.

The stock climbed 14% in recent trading as investors cheered the de-risking of one of the West’s most closely watched rare earths ventures. Arafura Rare Earths has given the final investment decision for its Nolans project in Australia’s Northern Territory, formally pivoting the development from planning into construction.

That milestone came after Export Finance Australia issued a binding credit commitment that sealed the project’s financing package. The state-backed lender joined a broader coalition of institutional supporters, including development banks from the United States, Canada, and Germany, which had already pledged funds. Australia’s KfW and Export Finance Australia together subscribed to A$230 million in equity, while the National Reconstruction Fund Corporation signed a binding term sheet for convertible notes. Major shareholder Gina Rinehart is also backing the venture.

Arafura has already locked in offtake agreements for 66% of the planned annual output. The integrated mine and processing facility is designed to produce 4,400 tonnes of neodymium-praseodymium oxide each year, the critical input for high-strength permanent magnets used in electric vehicles and wind turbines. Bindng contracts cover sales to Hyundai, Kia, and Siemens Gamesa. In addition, the Australian government has signed its first-ever offtake agreement under the nation’s strategic critical minerals reserve, a non-binding commitment for up to 500 tonnes of rare earths. The remaining volumes will be sold on the spot market.

On the construction timeline, earthmoving equipment is slated to arrive on site in September 2026, with first production targeted for the second half of 2029. The site, roughly 135 kilometres north of Alice Springs, will operate as a fully integrated complex encompassing mining, beneficiation, extraction, and separation. At the peak of building, around 600 workers will be on site; once operational, the workforce will settle at around 350 permanent jobs. Hatch has been appointed as the EPCM contractor to manage planning, procurement, and construction.

The wider economic impact is forecast to be significant: an independent analysis projects a A$25.2 billion contribution to the Northern Territory’s gross regional product over the planned 38-year mine life. At full production, Nolans is expected to supply around 4% of global demand for neodymium-praseodymium oxide, a figure Arafura says could rise to 5% when measured against total rare earth demand. The project also gives the West a rare wholly integrated supply chain outside China, with the company already exploring a second-stage expansion to process third-party rare earth material. A detailed pre-feasibility study for that expansion is the next item on the agenda.