Arafura Rare Earths has signalled it will maintain a deliberate and considered approach to securing further offtake agreements as it advances towards a final investment decision (FID) for its Nolans project in the Northern Territory.

The company confirmed it has entered binding agreements with cornerstone investors Export Finance Australia (EFA) and Germany’s Kreditanstalt für Wiederaufbau (KfW), on behalf of the German Raw Materials Fund (GRMF), securing equity subscriptions totalling approximately $230 million.

Arafura managing director Darryl Cuzzubbo said in the company’s quarterly report the agreements represent a significant step forward for the project and help underpin future engagement with offtake partners.

“The execution of the binding equity subscriptions with GRMF and EFA, together with our local pastoralist, are all powerful endorsements of Nolans strategic importance to western supply chains,” he said.

Alongside the funding progress, Arafura has continued to progress execution readiness activities, including entering into a Compensation Deed with ATAYF Pastoralists Pty Ltd, the holder of the pastoral lease covering the Nolans site.

The company has also acquired an existing camp with capacity for more than 200 rooms, positioning the project to move quickly into construction following a positive FID.

Arafura reported a cash balance of $561 million as at March 2026, slightly down from $571 million at the end of December 2025.

Cuzzubbo said the company is now nearing completion of its equity funding strategy and is well placed to transition into development.

“Arafura is advancing towards a final investment decision for Nolans,” he said.

“With equity funding strategies nearing completion and execution readiness activities advancing, we are well positioned to swiftly transition into construction.”

The company is also exploring opportunities to enhance its processing capabilities, announcing a partnership with Clean TeQ Water to review alternative rare earth separation technologies targeting the production of heavy rare earth oxides.

Cuzzubbo said this work, combined with internal studies, aims to maximise value from the Nolans resource.

At the same time, Arafura is continuing to take a measured approach to securing offtake agreements, with a focus on long-term value and supply chain resilience.

“We have been deliberate in our approach to secure offtake partners that share in a vision to enhance supply chain resiliency and revitalise in-country manufacturing,” he said.

“That approach includes securing the remaining offtake at a price that reflects changing market dynamics, recognising the pricing we accept today will be a key determinant of the Company’s value over the next 7–10 years.”

Arafura said it remains focused on finalising remaining offtake and funding arrangements ahead of an FID, with the aim of progressing what it describes as a nationally significant rare earths project.

Read more: Top five rare earths projects to watch in 2026

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