Bond.az - Arafura Rare Earths has approved the development of its $1.6 billion Nolans project in Australia's Northern Territory, set to become the country's third-largest rare earths operation by the end of the decade.
Shares rose 13.6% to A$0.335, the best intraday gain since March 11. The benchmark stock index was up 0.9%.
Arafura secured financing from export credit agencies of the US, Canada, Germany, and South Korea, along with global trading houses, as Western nations seek to reduce dependence on China for rare earths.
The company will supply South Korea's Hyundai and Kia, Germany's Siemens Gamesa RE, and Traxys' units in Luxembourg and the US.
Construction starts in September, with first production expected by mid-2029.
Arafura secured a $1.6 billion funding package and is backed by Australia's richest person, Gina Rinehart.
The Nolans project will produce 4,440 metric tons of neodymium-praseodymium (NdPr) oxide annually, targeting markets outside China amid growing demand for EVs and wind turbines.
This would make it Australia's third-largest operation after Lynas and Iluka. Australia is pushing to be the top rare earths supplier to its allies.
