Arafura Resources says it is on track to supply five per cent of the world's rare earths thanks to a huge deposit in Central Australia.At the moment there is only one rare earths separation plant in the world that is not in China
The Arid Lands Environment Centre says it supports the shift to renewable energy but has concerns about the Arafura's water licence The Australian-based company will receive $30 million to help build the country's first rare earth separation plant at its Nolans Project, 135 kilometres north of Alice Springs.
Managing director Gavin Lockyer said a separation plant in the Northern Territory would be pivotal for the industry."If you don't build a separation plant, then that product will have to go offshore – namely China – for downstream processing."and is aimed at reducing reliance on China, which holds up to 80 per cent of the product.
"You've only got to look at geopolitical situation at the moment, where, globally, companies are trying to diversify supply chains," Mr Lockyer said."It's not good practice to be reliant on one supplier."In the past six months Arafura's share price has climbed by more than 60 per cent, with its market value now sitting at about $430 million.
I'm picturing Australia as one big open cut mine.
There's a transition right there. From coal and gas to rare earths. We'll still need the miners..just in a different format. Coal has to go.