Arafura shares soar on $840m government injection
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More news: Shares in Arafura skyrocketed after the federal government announced an $840 million investment in a combined rare earths mine and refinery operated by the Gina Rinehart-backed miner.
Arafura shares, which entered a trading halt on Wednesday ahead of the announcement, jumped 56.5% by 1:30pm AEDT less than an hour after resuming trading on the ASX.
Government commits $840m to Arafura rare earths mine
The news: The federal government will invest up to $840 million in Australia’s first combined rare earths mine and refinery in the Northern Territory, operated by Gina Rinehart-backed miner Arafura.
The numbers: The refinery is expected to create more than 300 new jobs across the NT, with over 200 jobs during construction and over 125 permanent roles. This includes Arafura's stated ambition of securing 20% local Indigenous employment.
A statement from Prime Minister Anthony Albanese says support for the project, located 125 kilometres north of Alice Springs, is possible due to the expansion of the government's Critical Minerals Facility and Northern Australia Infrastructure Facility to a combined $11 billion.
The context: Rare earths are considered an essential part of renewable energy and defence technologies, used in the manufacturing of electronic vehicle motors, wind turbines, robotics and mobile phones.
The government said Arafura's project is the first of its kind in Australia, and its investment aims to position the country as a global leader in ethical and sustainable manufacturing of rare earths.
Arafura entered a trading halt on the ASX on Wednesday pending the release of an announcement.
What they said: Albanese said: "This will create local jobs and economic opportunities, helping Australian and Territory companies and workers capture more value from the game-changing critical minerals deposits we have here.
"This project is a major vote of confidence in the Northern Territory, which continues to punch above its weight in global trade."
Northern Territory Chief Minister Eva Lawler said: "Arafura’s project is an example of how this Government is attracting investment into our critical minerals sector that will significantly contribute to the Territory’s role in energy transition and reducing greenhouse gas emissions.
"Backed by record levels of investment into exploration, the mining and processing of critical minerals is a priority opportunity for the Territory to create more work opportunities for Territorians."
The source: Anthony Albanese media release
