The Federal Government has announced that it will be supporting the development of Australia’s first combined rare earths mine and refinery in the Northern Territory with an investment of up to $840 million.
The refinery will create over 300 new jobs across the Northern Territory while also diversifying its critical minerals supply chain. A first of its kind in Australia, the project is a step forward for Australia’s rare earths and critical minerals industry.
This investment is expected to position Australia as a global leader in ethical and sustainable manufacturing of these minerals.
The rare earths mine and refinery will be operated by Australian mineral exploration company Arafura and will be located 125km north of Alice Springs.
During construction it will create over 200 jobs, with over 125 full time jobs ongoing, including the company’s stated ambition of securing 20 per cent local Indigenous employment.
Rare earths are used to make powerful magnets, and are an essential component in renewable energy and defence technologies. Electric vehicle motors, wind turbines, robotics and mobile phones are examples of the kinds of technologies that rely on rare earths.
The government’s contribution is expected to unlock further investment from international financiers and commercial banks, highlighting the value placed on this investment.
Prime Minister, Anthony Albanese, said that the government is focussed on a future made in Australia, and that this project is an important part of that plan.
“We will deliver critical jobs and economic development in the heart of the Territory and the north,” Mr Albanese said.
“This will create local jobs and economic opportunities, helping Australian and Territory companies and workers capture more value from the game-changing critical minerals deposits we have here.
“This project is a major vote of confidence in the Northern Territory, which continues to punch above its weight in global trade.”
Northern Territory Chief Minister, Eva Lawler, said that creating more work opportunities for Territorians now and into the future is the priority of the Territory Government.
“The Federal Government’s commitment for Arafura’s rare earths mine and refinery will help us achieve that,” Ms Lawler said.
“Arafura’s project is an example of how the government is attracting investment into our critical minerals sector that will significantly contribute to the Territory’s role in energy transition and reducing greenhouse gas emissions.
“Backed by record levels of investment into exploration, the mining and processing of critical minerals is a priority opportunity for the Territory to create more work opportunities for Territorians.”
Federal Minister for Trade and Tourism, Don Farrell, said that the government is committed to unlocking new critical minerals projects to help Australia become a renewable energy superpower, and create hundreds of local high-paying jobs in the industries of the future.
“We have some of the largest deposits of critical minerals in the world and through this project, we’re encouraging more international partners like the Republic of Korea and Germany to invest in Australia and diversify global supply chains,” Mr Farrell said.
“International buyers and investors are key to developing our abundant critical minerals opportunities, which is why we are also building strong partnerships with major economies.”
Federal Minister for Resources and Northern Australia, Madeleine King, said that Australia’s critical minerals will be crucial to the new low-emissions technologies that will help lower emissions and support Australia’s trading partners to meet their climate goals.
“The combined funding from the Critical Minerals Facility and the NAIF will help Australia build downstream industries and support our goal to become a renewable energy superpower by 2030,” Ms King said.
“To meet our net zero targets we will need more mining, not less, to build the solar panels, batteries and wind farms we need to reduce emissions.”
