Australian minerals exploration company Arafura Resources has been awarded a $30 million grant under the Federal Government’s Modern Manufacturing Initiative (MMI).
According to the ASX Announcement, the company will use the money to construct a $90.8 million rare earth separation plant at its Nolans Project, 135 kilometres north of Alice Springs in Australia’s Northern Territory.
Nolans is Australia’s only shovel-ready Neodymium Praseodymium (NdPr) project, with potential to supply around 5 per cent of world NdPr oxide demand.
First of its kind in Australia and second outside of China, the e Nolans separation plant will produce separated rare earth oxides and enable the development of diversified rare earth supply chains.
“This grant is an exciting milestone for Arafura, recognising the strategic significance of the Nolans Project and its place in the future of critical minerals processing in Australia,” Arafura Managing Director Gavin Lockyer said.
“Rare earths are critical to the manufacture of electric vehicles and wind turbines, with demand growth forecast to be exponential in coming decades. Australia has a window of opportunity to invest in strategically important rare earths projects such as Nolans and maximise the local jobs and investment benefits of the clean energy revolution.”
The $1.3b MMI is part of the Federal Government’s Resources Technology and Critical Minerals Processing Roadmap that aims to develop Australia as a regional resources technology and critical minerals processing hub within 10 years.
Last year, the company embarked on an A$40 million capital raising campaign to advance its flagship Nolans Project.
