Arafura advances Nolans construction, inks new rare earth offtake as project funding nears completion

Arafura Resources ( (AU:ARU) ) just unveiled an update.

Arafura Rare Earths has completed key site reinstatement work, including camp, water and power, at its Nolans project following final investment decision and expects to be ready to commence construction in September 2026, subject to funding milestones and approvals. The company has also filled available roles in its owner’s team and committed to the Northern Territory Government to maximise local economic and capability benefits through procurement roadshows in Alice Springs and Darwin.

On the commercial side, Arafura signed a binding term sheet to supply up to 500 tonnes per year of rare earth magnet feed, including NdPr, Dy and Tb, to a special purpose vehicle backed by an Indian industrial group for at least five years, with pricing linked to a seaborne index. The agreement is contingent on full documentation and the offtaker’s designation under India’s rare-earth magnet manufacturing incentive scheme, while Arafura continues negotiations to revise terms on existing offtakes and diversify pricing indices.

Financing workstreams for Nolans are nearing completion, with lenders progressing through final credit approvals and due diligence ahead of contractual close on project finance facilities. Once conditions precedent, including shareholder approvals for cornerstone investor securities and completion of Export Finance Australia and KfW subscriptions, are met, Arafura expects to secure project funding, enabling full-scale construction and reinforcing its role in the rare earths supply chain.