Arafura Rare Earths Ltd. has made a final investment decision to develop the Nolans mine in Northern Territory, Australia, with construction planned to start in September 2026 [1]. The project is valued at about US$1.6 billion [2].
The Nolans mine is expected to produce roughly 5% of the global rare earth supply, a critical element for high-tech and clean energy industries [1]. Arafura plans to raise approximately A$350 million (about US$250 million) through a share placement to fund the equity portion of the project [2].
Australia's richest person, Gina Rinehart, through Hancock Prospecting, is supporting Arafura and remains the largest shareholder. Hancock Prospecting has committed around A$85 million in the share placement, raising its stake from 15.5% to roughly 17.5% [1, 2]. The share placement was priced at a 16.1% discount, which David Tuckwell, Chief Investment Officer of ETF Shares, described as "the cost of securing significant capital quickly with execution certainty" [2].
The project also has backing from the Australian government and export credit agencies in the US, Canada, Germany, and South Korea [1, 2]. Arafura has secured about 93% of binding offtake targets for neodymium-praseodymium oxide from the Nolans mine [2].
Tuckwell said the development is "a real positive and shows how serious investors and governments are about derisking global supply chains from Chinese control of rare earths." He added the capital raise "signals broad market confidence and marks a rare instance of the stock exchange minting a new mid‑tier miner" [2].
Arafura's final investment decision was announced on May 21, 2026, followed by the share placement plans on May 22, 2026 [1, 2]. Construction is set to begin in September 2026 [1].
