'Vital' major US and Australian-backed rare earths mine moves forward

A year after a multi-billion dollar critical minerals deal was signed between the US and Australian governments, one of its key projects has taken a significant step forward.

A ground breaking ceremony was held today at Arafura Rare Earth's Nolans Project, north of Alice Springs, with a promise that the mine and a processing plant will be built over the next three years.

The mine is set to have a life span of nearly 40 years, and officials say they hope it can create an economic windfall for Australia and the NT.

A $1.8 billion rare earths mine with the backing of the US and Australian governments, and Australia's richest woman Gina Rinehart, has hit a major milestone in Central Australia.

After two decades in development, ground has finally been broken at Arafura Rare Earths' Nolans mining project about 135 kilometres north of Alice Springs.

Company officials and politicians have pledged the Nolans mine will help upset China's dominance of the global rare earths market, create billions of dollars and bring hundreds of jobs to the Northern Territory.

NT Chief Minister Lia Finocchiaro said the mining project was significant not just for the Territory and Australia, "but for our global allies and partners".

"This is about the Northern Territory stepping up and showcasing its capability to the world and playing its role in this nation's sovereignty," she said at the Arafura site today.

" It's going to change and shape the landscape for critical minerals moving forward.

Federal Resources Minister Madeleine King also attended the ceremony and described the Arafura mine as a "nation-building project".

"It's of vital importance to the Northern Territory, it's of vital importance to the country and it's of global significance as well," she said.

The Arafura project is focused on producing the rare earths neodymium and praseodymium, which are used by global magnet manufacturers and a part of the supply chain for electric vehicles, wind turbines and defence capabilities.

According to Arafura Rare Earths, it has supply agreements in place with South Korean auto company Hyundai, Kia, Siemens Gamesa Renewable Energy and GE.

Chief executive and managing director Darryl Cuzzubbo said in a statement that the next three years would see the construction of the mine and processing plant at the site.

"Over the next three years, hundreds of people will build a mine and a processing plant here, in one of the most remote parts of the country," he said.

"It will be built in the same way we've built our partnerships with traditional owners, lenders, customers and other stakeholders — with integrity and respect at the core.

"Nolans will be here for more than half a century.

" With partners across the world's largest manufacturing hubs in Korea, Europe, the US and India, the operation will be important on a global scale.

The Arafura project reached a final investment decision earlier this year, after receiving significant financial backing from Australia and its allies.

Ms King said the federal government had supported the Arafura rare earths mine "to the tune of $1.2 billion".

The mine was among the projects cited in a critical minerals deal signed between Prime Minister Albanese and US President Donald Trump in Washington DC last year.

The deal, which also included projects in Victoria, Queensland and New South Wales, was reported to be worth up to $US8.5 billion.

Ms Hancock's company Hancock Prospecting also owns a significant stake in the company.

The NT government has said the mine will be just the third "fully integrated ore-to-oxide operation outside mainland China and is expected to produce around four per cent of global neodymium-praseodymium oxide demand outside China".