Northern Territory Rare Earth Project Set to Deliver 1,000 Jobs

Arafura Rare Earths has moved ahead with development of its Nolans Rare Earths Project in the Northern Territory, which it says will become Australia’s first fully integrated rare earth operation processing material from ore through to oxide production.

In an announcement to the ASX on May 21, the company said its board had reached a Final Investment Decision (FID), allowing the project to move into its next phase after years of financing work, supply agreements and partnership discussions.

Construction is currently targeted to begin in September 2026.

The project is expected to generate around 950 jobs, including 600 jobs during the construction phase and 350 ongoing, permanent jobs once operations commence.

The project advances at a time when Australia and its allies are increasingly trying to build critical mineral supply chains to counter the Chinese Communist Party’s (CCP) dominance of the global market.

Arafura Chair Mark Southey described the decision as a major milestone for the company.

“It is the culmination of a deliberate and patient strategy,” he said.

Global Partnerships Back Project

Arafura said the decision followed progress in securing support from government-backed institutions across several countries, along with supply agreements with international manufacturers.

The company also said Export Finance Australia had issued a non-binding Letter of Support under the Critical Minerals Strategic Reserve regarding potential support for up to 500 tonnes a year of NdPr (Neodymium-Praseodymium) oxide from the project.

NdPr oxide is the main raw material used to manufacture high-strength permanent magnets, which have a wide range of applications, including renewable energy, automobile manufacturing, medical devices and defence equipment.

Southey said international partnerships had been central to bringing the project to this stage.

“We have always believed that the right partners would define the quality and durability of the Nolans supply chain. Together with our customers, investment partners and financiers across Europe, Korea, Canada, the United States and Australia, we are now ready to deliver our transformational project,” he said.

Treasurer Jim Chalmers said Arafura’s decision to expand its are earths mining operations in Australia was “a win for workers and the nation’s economic security.”

“This is a win for workers and it’s a win for Western Australia and a win for the Northern Territory. It will deliver more jobs and opportunities for Australian workers and a more reliable supply of the resources we rely on,” he said.

“The world needs critical minerals, Australia has plenty of them, and we’re helping workers and businesses make the most of this big opportunity.”

Broader Critical Minerals Push

The decision also comes as Australia looks to strengthen its role in the global critical minerals sector. Democratic nations have been working to diversify supply chains in recent years as China continues to account for about 70 percent of global processing capacity.

Ahead of the 2025 election, Prime Minister Anthony Albanese announced a $1.2 billion Critical Minerals Strategic Reserve, expected to begin operating in the second half of 2026.

Australia and the United States also agreed in October 2025 to each contribute at least US$1 billion towards an US$8.5 billion pipeline of critical minerals projects across both countries.

However, a recent Senate inquiry into critical minerals was told that significant hurdles remain. Evidence from Australian Strategic Materials pointed to challenges including infrastructure gaps, complex approval processes and workforce shortages.

“Delays, duplication, and uncertainty across planning and environmental approvals can materially impact investment decisions and project timelines,” Annaliese Eames, chief legal and external officer at ASM, told the House Standing Committee on Primary Industries.