Rinehart project benefits from $840 million federal government investment in Central Australian rare earths project

The Commonwealth Government has committed to investing up to $840 million in loans and grants to support the development of the country’s first combined rare earths mine and refinery situated in Central Australia.

Critical minerals strategy

The announcement is part of a broader government strategy to support critical minerals projects across the country, following a global downturn in the prices of these essential commodities.

The government hopes to promote sustainable mining practices and further its ambition to meet global climate targets through increased production of renewable energy components.

The substantial financial support for the Nolans Project, backed by Gina Rinehart’s mining company Arafura and125 kilometres north of Alice Springs, is expected to bolster Australia’s position in the global race for critical minerals.

The government hopes the initiative will showcase the ethical and sustainable production of rare earth elements, essential for the manufacturing of magnets, electric vehicles (EVs), and renewable energy technologies.

The Arafura project, with its focus on producing neodymium and praseodymium, has already secured supply agreements with major international firms, including Hyundai, Kia, and Siemens Gamesa Renewable Energy.

Federal Resources Minister Madeleine King emphasised the importance of this investment during an interview with ABC Radio National, highlighting Australia’s need to leverage its vast mineral resources to compete on the global stage.

King pointed to the historical practice of exporting raw minerals for processing abroad, stressing the need to shift towards domestic processing to retain more value within the country.

The government’s financial package for the Arafura project includes contributions from several funding sources, including $495 million from the Critical Minerals Facility and $200 million through the Northern Australia Infrastructure Facility (NAIF).

Jobs creation

This investment is anticipated to generate over 200 construction jobs and some 125 ongoing positions, contributing significantly to local employment and economic growth.

Prime Minister Anthony Albanese and King have both underscored the importance of such investments for Australia to carve a niche in the global rare earth market, ensuring the nation’s role in future technologies and energy solutions.