Arafura Resources on secures Australian Government funding through the Critical Minerals Facility

📢 Member News 📢

AKBC congratulates our member Arafura Resources on securing Australian Government funding through the Critical Minerals Facility, Northern Australia Facility and Export Finance Australia to build Australia’s second rare earths refinery for minerals that are crucial to the clean-energy and defence industries. Arafura, which is listed on the ASX with a market value of $355 million, has agreements to supply rare earths to South Korean automaker Hyundai, Siemens Gamesa Renewable Energy, and GE.
 
The company aims to benefit from agreements between the South Korean and Australian governments to partner on critical minerals given both have struck defence alliances with the United States. In December, the South Korean export credit agency KEXIM provided a letter of intent that suggested it was willing to lend $US150 million ($226 million) to the company.
 
This project signifies the broader opportunity between Australia and Korea in the rare earths and critical minerals space, with Australia being rich in rare earths and critical minerals and Korea being a major manufacturing hub including battery and car manufacturing. With changing geopolitical circumstances and government incentives offered by Australian and other governments, this offers a significant opportunity for Australian miners to partner with Korea to secure supply chains. This also mirrors Minister Don Farrell’s message to Korean investors, encouraging investment in Australia to diversify global supply chains.
 
AKBC has an active critical minerals sub-committee. Email us at info@akbc.com.au to find out more. 🇦🇺🇰🇷

Read more below 👇:
https://www.afr.com/companies/mining/rinehart-backed-arafura-gets-840m-in-taxpayer-aid-for-nt-project-20240313-p5fc6r