Rineheart nearly doubles Arafura stake 

Gina Rinehart’s Hancock Prospecting has committed $125m to Arafura Rare Earths (ASX: ARU) as part of a recent $425m capital raise, bumping Rinehart’s holding to about 15.7%. 

The capital raise brings Arafura closer to the full funding of $2.3b required for the development of its Nolans rare earths project, located 135km north of Alice Springs in the Northern Territory. Nolans is set to be Australia’s first integrated rare earths mine and processing facility. 

The Nolans raise follows Prime Minister Anthony Albanese’s visit to the US last week where he signed a $13b Australia-US investment framework for rare earths and critical minerals with US President Donald Trump.  

As part of the framework, Export Finance Australia pledged $150m [US$100m] to the project which is expected to produce 5% of the global demand for rare earths essential for energy security and defence. 

Arafura has already secured about $1.17b [US$775m] of debt, about $200b [US$133m] in convertible notes from the National Reconstruction Fund Corporation, $50m from investors and is awaiting approval of $171m [US$113 m] of funding from German state-owned development bank KFW for the Nolans project. 

Arafura also received a letter of interest from the US Export-Import Bank for up to $450m [US$300m] in finance for Nolans.  

Arafura managing director and chief executive Darryl Cuzzubbo says the demand received for the project has validated the importance of Arafura’s role in a diversified global supply chain.  

“We have progressively delivered a funding solution that will support a final investment decision announcement early next year and see us commence construction of what will be an iconic project for Australia of global significance,” he said. 

Hancock Prospecting has more than tripled its rare earths portfolio this year. 

The company holds an 8.2% stake in Lynas Rare Earths (ASX: LYC) — currently the only producer of separated rare earths outside of China — and an 8.5% stake in the US’ only fully integrated rare earths producer MP Materials. 

Hancock also recently acquired 225 million shares in St George Mining (ASX: SCQ) which is developing the rare earths-niobium Araxá project in Brazil.