A planned open cut mine to extract rare minerals in central Australia took a step closer this week.
More steps have been taken for the opening of a rare earths mine and processing plant in central Australia.
The NT Government this week offered the grant of mineral leases to Perth-registered Arafura Rare Earths Pty Ltd, paving the way for its proposed Nolans open-cut mine.
Mining remains one of the rare bright spots as the coronavirus hammers the Australian economy.
Located 135 kilometres north of Alice Springs, the Nolans Project will produce Neodymium and Praseodymium.
Nolans Bore was once identified as a prospective uranium find but Arafura is looking to mine the rare earths.
Both rare metals are in demand for environmentally friendly, high tech applications such as magnets for electric vehicles, mobile phones, wind turbines and medical equipment.
Nolans is one of the world's largest and most intensively explored NdPr deposits of its kind with the potential to produce around 10 per cent of global demand for NdPr magnet feed and plans to mine over a million tonnes of ore per year.
The company has been in negotiations with the Northern Australia Infrastructure Facility on finance to help get the project started.
This latest regulatory milestone follows the project being awarded Major Project status by the Territory Government, and agreement with Anmatyerr Native Title Holders to provide access for the project in June this year.
The project has an initial operational life of 33 to 39 years.
Graphic: Arafura Resources.
It is estimated up to 650 would be created during the construction phase over a 30 month period and 280 jobs during the operational phase.
These same opportunities will be extended to the Anmatyerr people with Native Title rights to the land near Aileron, through jobs, training and economic development pathways.
Arafura Resources will now be required to lodge a Mining Management Plan with the Department of Primary Industry and Resources and hold a valid authorisation under the Mining Management Act 2001 before any ground activity can start.
Once authorisation under the Mining Management Act 2001 is obtained and a mining management plan approved, construction and mine development activities can commence. Arafura Resources hopes to start work on construction at the site next year.
Primary Industry and Resources Minister Paul Kirby said: "The Territory mining industry is already the largest source of revenue to the Territory economy, but the potential for growth in the sector is well known and is being realised.
"The Nolans rare earth project has the potential to make the NT a major global producer of critical materials in revolutionary, eco-friendly tech components and products.
Arafura Resources Limited managing director Gavin Lockyer said: "This significant milestone brings us one step closer to a final investment decision at a time when critical minerals, such as rare earths, are in growing demand around the world.
"The Native Title Agreement and granting of the mineral leases will provide investors with a major confidence boost that the project is ready to proceed, subject to finance.
"We will soon lodge a Mining Management Plan which outlies how we will operate and ultimately close the project, and comply with mining regulations" While you're with us, you can now receive updates straight to your inbox each Friday at 6am from the Katherine Times. To make sure you're up to date with all the news, sign up here.
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