Arafura Resources and Alcoa Corporation are going to emerge as the first organisations to benefit from a new partnership between the US and Australia. Jointly driven by both governments, the partnership aims to boost investment in projects across Western Australia and the Northern Territory that focus on essential raw materials.
After the disclosure of the deal, Arafura Resources’ shares jumped by 18.5 per cent, while Alcoa’s stock saw a mild fall of around 1.3 per cent.
The Australian government has committed several hundred million dollars to support key ventures under a wider AUD 13 billion (USD 8.4 billion) strategy to grow the country’s critical minerals capacity.
The funding is intended to secure supply lines, build local processing facilities, and cut dependence on imported resources that are vital to clean energy, defence, and advanced manufacturing.
One of the major allocations, AUD 307 million, will be invested in the Alcoa–Sojitz Gallium Mining Study at Wagerup in Western Australia. Conducted in partnership with Japanese trading group Sojitz, the project is a step forward towards gallium production at Alcoa’s alumina refinery.
Also Read: Inside the global race for gallium: The metal behind America’s military edge
Gallium is the key mineral for semiconductors and other high-tech applications. With this project, Alcoa, already a global producer of bauxite, alumina and aluminium, moves further into the field of high-value critical minerals.
On the other hand, Arafura Resources is expecting AUD 154 million (USD 100 million) to advance its Nolans rare earths project. The funding will be transferred to the development of a mine and a processing plant for the ongoing production of rare earth elements such as neodymium and praseodymium, along with associated minerals like thorium. These materials are vital for electric vehicles, wind turbines and other green technology solutions.
Also Read: ABx Group achieves 98 per cent rare earth retention in Deep Leads processing programme
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