Arafura Rare Earths has secured a $200 million funding commitment from the National Reconstruction Fund Corporation (NRFC) for its Nolans rare earths project, bringing the miner closer to developing one of Australia’s most strategically important critical minerals operations.

The deal marks another step in Arafura’s push to build a globally significant rare earths supply chain outside China, with the company now securing $911 million in binding equity-related commitments and previously raised equity for Nolans, located 135 kilometres north of Alice Springs in the Northern Territory.

The unsecured convertible notes will be linked to the maturity of Nolans’ senior finance facilities and carry a seven-year conversion period, with no conversion allowed during the first two years. The notes are convertible at $0.476 per share and will rank behind the project’s senior debt facilities.

“Following the execution of EFA [Export Finance Australia] and GRMF [German Raw Materials Fund] equity investment agreements in March 2026, Arafura continues to deliver on its equity funding plan with the execution of the NRFC Convertible Note agreements,”Arafura managing director Darryl Cuzzubbo said.

“NRFC is a key stakeholder and foundational cornerstone investor which has been critical to the success of the Nolans funding.”

“This funding will deliver on many of NRFC’s core objectives including sovereign and supply chain resilience, economic diversification and decarbonisation in which rare earths play a key role.”

The agreement replaces a binding term sheet first announced in January 2025 and remains subject to several conditions, including Arafura making a final investment decision on Nolans, executing senior debt documentation, shareholder approval and securing all remaining equity funding.

“The convergence of government support from Australia, Germany, Korea and Canada is not a coincidence,” Cuzzubbo said. “It is recognition that the world cannot afford to continue managing the risks of a single-source, single-processor rare earth supply chain. The result is a capital structure that reflects genuine alignment.”

Funding for Nolans during construction will be drawn in stages, beginning with cash and ordinary equity, followed by the NRFC convertible notes, senior debt and contingency facilities if required.

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