Arafura Rare Earths Mine Gets Approval to Challenge China

By Charles Geary

By Tom Robinson

ABC Rural

Topic: Mining and Metals Industry

Thu 21 May 2026 at 2:58pm

Arafura Rare Earths has given the green light to its Nolans project, decades after it was first planned.

In short:

Arafura Rare Earths has announced its flagship Nolans mine will go ahead, decades after it was first planned.

The project has received substantial public funding and was listed as a priority in an agreement between the USA and Australia.

What's next?

Industry observers say the mine will challenge China's dominance of the market.

A Northern Territory rare earths mine at the centre of a Trump-Albanese deal will proceed, after the federal government agreed to buy up to 500 tonnes of product per year.

Arafura Rare Earths has announced the Nolans mine 135 kilometres north of Alice Springs will go ahead, decades after it was first planned.

Nolans has received hundreds of millions of dollars in public funding and was listed as a priority in a critical minerals deal between the US and Australian governments last year.

Multi-billionaire Gina Rinehart is also a key investor in the project, which would extract and then process rare earths, producing NdPr oxide.

Nolans was at the centre of a deal struck in Washington between Prime Minister Anthony Albanese, and US President Donald Trump.

Managing director Darryl Cuzzubbo told the ABC Country Hour the announcement was 'the starting line' and production was several years away.

We're very excited to be moving into construction … there's a lot of parties that have supported us, different levels of government, different investors.

NdPr oxide is used in electric vehicle motors, renewable energy production, defence technology and advanced manufacturing.

Nolans would be Australia's first ore-to-oxide rare earths facility, with a sulphuric acid plant planned for processing.

The federal government expects the site to supply about 4 to 5 per cent of global demand when at full capacity.

Darryl Cuzzubbo says the project has long-term commercial viability.

Mr Cuzzubbo said it took decades to reach a final investment decision due to the complexities of building a processing facility, as well as a mine, in a market dominated by China.

Mr Cuzzubbo said Nolans will provide a viable supply alternative to Chinese operations.

Almost all of the rare earths produced globally are only processed to a concentrate or a carbonate, whereas we take it one step further to an oxide.

We have done that so that we can be an ex-China source of rare earths.

He said government support was crucial in securing private investment.

Investors need to have seen that government support to be confident that ultimately pricing won't be controlled by one entity.

Arafura Rare Earths has previously built an accommodation village for workers at the Nolans site.

The federal government has committed to buy up to 500 tonnes of NdPr oxide per year, with funds from its $1.2 billion Critical Minerals Strategic Reserve.

It is the first time the reserve has been used, according to federal Resources Minister Madeleine King.

Arafura has also signed supply agreements with a range of international companies.

This includes South Korean car manufacturers Hyundai and Kia, German renewable energy company Siemens Gamesa and US commodity trader Traxys.

China's dominance

A sustainable minerals expert at the University of Queensland, Ian Satchwell, said Nolans would reinforce Australia's position as the 'pre-eminent' supplier of rare earths outside China.

China currently produces more than 80 per cent of the world's light and heavy rare earths, and very close to 100 per cent of heavy rare earths.

Ian Satchwell says Australia is the second biggest supplier of rare earths, behind China.

Professor Satchwell said China had long used its dominance to manipulate prices.

China's behaving from their perspective, quite rationally; they dominate rare earths mining and processing.

It's in their best interests to keep competitors out of the market.

Thu 21 May 2026 at 2:58pm

Promotion

Hörübung

Hörübung