Originally published by Rebecca Le May of The West Australian.
01.07.2026
Perth’s Arafura Rare Earths has inked a sales deal with an India-based metals producer for its Nolans project, just over a month after deciding to proceed with it.
The project is situated 135km north of Alice Springs in the Northern Territory and was the first to be backed by the Federal Government’s critical minerals strategic reserve.
On Tuesday, Arafura said it had signed a binding term sheet for 500 tonnes per annum of neodymium-praseodymium oxide – the key ingredient for rare-earth magnets used in electric vehicle motors – over a minimum five year period.
Arafura did not name the offtake partner, describing it as a special purpose vehicle established by a member of a privately owned Indian industrial group that produced metals, critical minerals and technology.
The deal includes an option to extend for a further two years by mutual agreement, with pricing to be based on a seaborne traded index.
Arafura’s final investment decision for Nolans was announced in May after the Albanese Government confirmed a non-binding commitment to secure 500 tonnes of rare earths from the project.
It was also one of two projects to receive joint US and Australian funding after Prime Minister Anthony Albanese met Donald Trump in the White House in October.
It is estimated that once fully operational — anticipated to be in 2029 — the mine will supply 5 per cent of global demand for rare earths.
Australia’s wealthiest person Gina Rinehart became Arafura’s biggest shareholder, via Hancock Prospecting, through a $525 million capital raising in late 2025.
It is also backed by the Commonwealth Bank of Australia, Korea’s Export-Import Bank and German export credit agency KfW, and already has offtake agreements with European, Korean and North American counterparts.