Federal Boost for Sovereign Rare Earths Processing Jobs
The Australian government is investing in rare earths processing to create jobs and reduce reliance on China for critical minerals
Rare Earths, Northern Territory, Australia, Arafura, Gina Rinehart, Mining
The government is putting in $200 million into Arafura Rare Earths, marking the largest investment from the NRFC so far, as noted by Industry and Science Minister Ed Husic. This mine and processing plant will be a first for Australia and one of the biggest globally, which is pretty exciting for the Northern Territory.
With this latest funding, taxpayer support has exceeded $1 billion in under a year for the Nolans Project, which is about 135 kilometers north of Alice Springs. Gina Rinehart’s Hancock Prospecting holds a 10% stake in Arafura, which is a significant player in this space.
Experts predict that the demand for processed rare earths will double by 2030, but right now, China dominates the market. Australia, however, has some of the largest rare earth deposits, crucial for defense tech, advanced communications, and clean energy solutions like wind turbines and electric vehicles.
Mr. Husic emphasized that this investment not only strengthens Australia’s mining sector but also helps reduce emissions and improve supply chains. The Northern Territory government is prioritizing the mining and processing of these vital minerals, which is strategically important for Australia and its allies.
This funding will create a local supply of critical minerals, mined and refined right here, while also opening up new export opportunities. It’s expected to generate hundreds of secure, well-paying jobs for central Australia, benefiting First Nations communities significantly.
The recent financing follows a 2024 federal package that includes $495 million from the critical minerals facility, $200 million for Northern Australia infrastructure, and additional funding from Export Finance Australia and a modern manufacturing grant.
The project aims to be Australia’s first facility to process neodymium and praseodymium ore into oxide. It’s ready for construction and has backing from international financiers. The mine is projected to produce around 4,440 tonnes annually, which could meet about 4% of global demand by 2032.
Shares in Arafura, which is partly owned by Rinehart’s Hancock Prospecting, saw a slight dip to 11.5 cents at the close on Tuesday.