Arafura Rare Earths Locks in Funding and Regulatory Milestones as Nolans Project Shifts to Execution

Northern Territory government registers Nolans as 'under construction' as Arafura raises A$350M; 93% of NdPr output covered by offtake, with September 2026 target still conditional.

The Northern Territory government has officially listed the Nolans rare earths project in its “under construction” registry, marking a new phase for Arafura Rare Earths as the company transitions from planning to physical build-out. The September 2026 start date, first cited by the company after its final investment decision on 21 May, now appears in the government’s own records — alongside investment estimates of US$1.226 billion and a workforce of 682 during construction, falling to 366 once operations begin.

Arafura yesterday confirmed the issue of roughly 675 million new ASX-listed shares, the first tranche of a A$350 million capital raising that will leave the company with a pro-forma cash position of around A$911 million. The bulk of the funding — some A$430 million — comes from three institutional backers: the German Rohstoffonds, Export Finance Australia, and the National Reconstruction Fund. Mining billionaire Gina Rinehart’s Hancock Prospecting has chipped in A$85 million, taking a 17.5% stake and becoming the largest single shareholder.

On the commercial front, binding offtake agreements already cover 93% of planned annual neodymium?praseodymium oxide production. Hyundai, Kia, Siemens Gamesa and Traxys are among the confirmed buyers, with a new framework agreement with Traxys North America adding 500 tonnes of NdPr oxide per year. At full capacity, Nolans is expected to supply around 4% of global NdPr demand — the key input for permanent magnets used in electric vehicles and wind turbines — along with 470 tonnes of mixed middle?heavy rare earth oxides and 144,000 tonnes of phosphoric acid for fertiliser.

The timeline, however, remains conditional. Arafura acknowledges that before ground can be broken in September, the remainder of the equity raising must be approved by shareholders at an extraordinary general meeting scheduled for July 2026, and major construction contracts must still be awarded. The company has already appointed Hatch as EPCM contractor to prepare for execution, but the September date is an aspirational target rather than a fixed deadline. Production is not expected to begin until 2029.

For investors, the focus has shifted from securing strategic partners to delivery. The first tranche of new shares is due to begin trading on 29 May, while the second tranche goes to a shareholder vote in July. If approved, the A$350 million placement — combined with debt and government support from the Critical Minerals Reserve — gives Arafura the financial firepower to start building what would be Australia’s first fully integrated rare earths mine?to?oxide refinery, with a projected mine life exceeding 38 years.