Australia's Arafura cuts gains after surge on commitment to Nolans rare earths project

Arafura Rare Earths

21/05/2026 03:43

** Arafura Rare Earths ARU.AX shares jump 13.56% to A$0.335 before surrendering most gains to trade 0.9% higher by the midday

** Stock marks sharpest intraday jump since March 1

** Rare earths miner commits to developing its Nolans project in the Northern Territory, set to become the country’s first fully integrated mine‑to‑oxide rare earths operation

** Project targets annual output of 4,440 metric tons of neodymium-praseodymium oxide, positioning itself to tap rising ex‑China demand from EV and wind energy markets

** Funding package includes A$481 million equity raise with A$230 million ($163.74 million) in cornerstone backing from Germany's state-owned development bank and others, alongside A$200 million convertible notes deal

** Stock up 10.2% YTD

($1 = 1.4047 Australian dollars)

 (Reporting by Kumar Tanishk in Bengaluru)

 ((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk http://www.x.com/thatstanishk;))