Originally published by Alice Guidetti of Wamn News
24.05.2026
Federal Resources and Northern Australia Minister Madeleine King has announced the Albanese Government will use the Critical Minerals Strategic Reserve for the first time, signing a preliminary agreement to purchase up to 500 tonnes of rare earths per annum from the Northern Territory.
The rare earths will be sourced from the Arafura Rare Earths Nolans Rare Earths Project, located 135 kilometres outside Alice Springs, marking a significant development for both Alice Springs and the Northern Territory economy.
The project is expected to supply between four and five per cent of global rare earths demand, representing a major milestone for both the company and international supply chains.
The Nolans Project will include a mine and processing plants, focused on developing one of the world’s largest and most extensively explored rare earth deposits — the Nolans Bore rare earths-phosphate-uranium-thorium deposit.
Managing Director and CEO of Arafura Rare Earths, Darryl Cuzzubbo, revealed the project has received backing from Germany, the United States, South Korea, Canada, as well as Australia’s Export Finance Australia and the Northern Australia Infrastructure Facility (NAIF).
He highlighted the significant number of high-skilled jobs expected to be created in the Alice Springs region.
“Just phase one will double the number of containers going through Darwin Port,” he said.
“And I’d like to think that as we pursue the ambition of becoming a processing hub for rare earths in Australia, it will help unlock the rare earths sector.”
Preparation works on the raw land and soil are expected to begin in September this year, with construction anticipated to take slightly more than three years.
Mr Cuzzubbo expressed confidence the project would meet its construction timeline, saying it is supported by strong engineering and planning.
“We’re going all the way downstream to an oxide. But what that has meant is that the funding challenge is much more significant. That’s why we’ve needed support from key investors and governments — not just Australia, but Germany and others as well,” he said.
“But because we are, there are more jobs in Australia, more processing in Australia, and we can provide an alternative supply chain outside of China.”
Mr Cuzzubbo also argued the rare earths market has required government intervention because it has not operated as a fully functioning market, saying the long-term goal is for rare earth pricing to become “independent and transparent”.
“So the pricing mechanism has not reflected the market fundamentals. And the US has fractured that pricing environment by putting in price floors,” he said.
He further stressed the project’s importance, revealing that the revenue generated from one kilogram of material is enough to support production for approximately half a million electric vehicles.
With binding commitments already secured from companies including Hyundai, Kia and Siemens Gamesa, Mr Cuzzubbo said the Nolans Project would operate under Australia’s high environmental standards, positioning it as an attractive supplier for electric vehicle manufacturers pursuing sustainable supply chains.
Federal Treasurer Jim Chalmers described the project as “a step forward for the Australian rare earths industry”, highlighting the importance of critical minerals to Australia’s economy and national security.
He also noted the broader economic benefits for Western Australia, recognising the state’s importance to the national economy as well as ongoing housing and workforce challenges.
“We know that WA is such an important powerhouse of the national economy, and that’s why we’re here today — the Critical Minerals Strategic Reserve. That’s why we’re supporting WA workers, small businesses and first home buyers as well,” he said.