Nolans Project Secures ‘Under Construction’ Tag as Arafura Readies Second Funding Tranche

Australia’s push to build a fully integrated rare earths supply chain passed a concrete milestone this week when the Northern Territory government formally listed Arafura Rare Earths’ Nolans project in its “under construction” register, pegging the start of on-site work for September 2026. The registration — which covers rare earths and phosphate — signals that the A$1.6 billion venture is shifting from spreadsheet to spade, even as the company continues to lock down its financing puzzle.

Arafura has already completed the first leg of a two-tranche capital raise, lodging 675.126 million new ordinary shares for quotation on the Australian Securities Exchange. That tranche brought in roughly A$175.5 million. A second tranche of 671 million shares, expected to generate another A$174.5 million, remains subject to shareholder approval at an extraordinary general meeting scheduled for July 2026. Together with commitments from the Australian National Reconstruction Fund, Export Finance Australia and Germany’s raw materials fund, the company projects a pro-forma cash position of around A$911 million once both placements are settled.

The cash will flow directly into the Nolans project, which Arafura describes as Australia’s first ore-to-oxide rare earths refinery. The Northern Territory’s register estimates total investment at US$1.226 billion — a figure that sits below the company’s own total cost projection of US$1.6 billion but still underscores the scale of the undertaking. According to the register, the mine will generate 682 construction jobs and 366 permanent operational roles, with a projected mine life exceeding 38 years.

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Output will centre on neodymium-praseodymium (NdPr) oxide, a critical ingredient for permanent magnets in electric vehicle motors and wind turbines. Arafura targets annual production of 4,440 tonnes of NdPr oxide — roughly 4% of global demand for magnet-grade rare earths, according to the company. Export Finance Australia puts the contribution slightly higher, at 4%–5% of total worldwide rare earth consumption. The mine will also yield 470 tonnes of mixed middle-heavy rare earth oxide and 144,000 tonnes of phosphoric acid suitable for fertiliser use.

The offtake picture is robust: 93% of planned production is already covered by binding agreements with Hyundai, Kia, Siemens Gamesa and Traxys. Arafura’s board took the final investment decision on May 21, 2026, triggering the transition to execution. Engineering, procurement and construction management firm Hatch has been appointed as the EPCM contractor. Subject to the July shareholder vote and finalisation of construction contracts, the company expects to break ground in September 2026 and begin commercial production in 2029.

The dual-track approach — finishing the funding round while advancing operational milestones — means Arafura’s investors face a near-term dilution of roughly 28.8% from the combined placements. The first tranche began trading on May 29. The second tranche’s fate hinges on the July EGM outcome. For now, the Northern Territory’s seal of approval provides a tangible marker of progress, shifting the conversation from ‘whether’ to ‘when’ the Nolans project will start delivering rare earths to its global customer base.

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