Name of the Project
Nolans neodymium/praseodymium rare earths project.

Location
Northern Territory, Australia.

Project Owner/s
Australian mining company Arafura Resources.

Project Description
The Nolans project will encompass a mine, a process plant – comprising beneficiation, extraction and separation plants – and related infrastructure.

An updated feasibility study has optimised the production schedule and financial outcomes of the project. The pit optimisations, mine designs, ore reserves and mining inventory are unchanged from the updated mining study in March 2020.

The project has ore reserves of 29.5-million tonnes grading 2.9% total rare-earth oxides, 13% phosphorous pentoxide and neodymium/praseodymium (NdPr) enrichment of 26.4%.

The updated feasibility study has reported a minor increase in the concentrate processing capacity of the process plant – from 330 000 t/y to 340 000 t/y. The definitive feasibility study was based on 300 000 t/y.

The beneficiation capacity has increased from one-million tonnes a year to 1.5-million tonnes later in the life-of-mine to accommodate lower run-of-mine head grades.

Minor changes to the hydrometallurgical recovery of rare earths and phosphorous pentoxide, resulting from the changes to the processing plant design, have also been reported.

The project is expected to produce 4 440 t/y of NdPr oxide over its 38-year mine life. The production of middle and heavy rare-earth oxides is estimated at 474 t/y and phosphoric acid at 144 393 t/y.

Potential Job Creation
The project will create 650 jobs at the peak of construction and new high-value export opportunities.   

Net Present Value/Internal Rate of Return
In the base case, the project has a net present value, at an 8% discount rate, of A$2.4-billion and an internal rate of return of 19.3%.

Capital Expenditure
Preproduction capital is estimated at A$1.39-billion plus A$196-million in contingency.

Planned Start/End Date
Commercial production and ramp-up is expected to start by December 2028.

Latest Developments
Arafura Rare Earths has signed binding subscription agreements with Germany’s State-owned development bank Kreditanstalt für Wiederaufbau (KfW) and export credit agency Export Finance Australia (EFA), which will result in the company's securing equity subscriptions of A$230-million.

The subscriptions comprise A$84-million from KfW, on behalf of the German Raw Materials Fund, and A$146-million from EFA.

Combined with a binding A$200-million convertible notes commitment from the National Reconstruction Fund Corporation and a A$481-million equity raising having been completed in late 2025, Arafura has significantly derisked the equity funding required for developing the Nolans project.

The latest transactions enforce the strong support from government agencies that Nolans has received and underscore its strategic importance in diversifying global rare earth supply chains.

Arafura is now firmly positioned to finalise the equity funding package for Nolans and deliver Australia’s first fully integrated ore-to-oxide rare earths operation.

For the German government, the project aligns with objectives to secure rare earths supply to be used in the manufacturing of permanent magnets for offshore wind turbines assembled at Siemens Gamesa Renewable Energy’s Cuxhaven facility, in Germany.

At completion of its subscription, KfW will have the right to nominate one director to the Arafura board.
In turn, EFA’s subscription falls under the Australian government’s $5-billion Critical Minerals Facility. EFA expects the Nolans project to help develop Australia’s critical minerals sector.

The subscription agreements are still subject to some regulatory processes, as well as Arafura shareholder approval, which will be determined during a general meeting in due course

Key Contracts, Suppliers and Consultants
KBR, Wave International and Arafura’s geological, metallurgical and project personnel (updated definitive feasibility study); Mining Plus (mine planning, design and scheduling, along with mining cost estimation); Simulus (process simulation); and Infinity Corporate Finance (financial modelling).

Contact Details for Project Information
Arafura Resources, tel +61 8 6210 7666 or email arafura@arultd.com.