New Export Finance Australia equity deal lifts taxpayer backing for Arafura Rare Earths past $1.2 billion

Taxpayer funding for the Gina Rinehart-backed Arafura Rare Earths has cracked $1.2 billion after an equity injection by Export Finance Australia. EFA’s $US100 million ($144.7m) purchase of Arafura shares under the Federal Government’s $5b critical minerals facility was one of two equity investments announced by the company on Wednesday that will advance the Nolans project in the Northern Territory. German state-owned development bank KfW will also pump in €50 million ($84m). Arafura shares were 2.2¢, or nearly 8 per cent, better at 30¢ as at 11.40am. Arafura managing director Darryl Cuzzubbo described the twin deals as “a transformational milestone”. “The execution of binding equity subscriptions from these two government agencies is a powerful endorsement of the strategic importance of Nolans to western supply chains,” Mr Cuzzubbo said. “This outcome is consistent with our long-stated equity funding strategy of partnering with government-seeded critical minerals funds, customers and strategic investors who share our vision for developing a reliable, and diversified source of rare earth supply.” Mrs Rinehart is Arafura’s biggest shareholder, lifting her stake via Hancock Prospecting through a $525m capital raising by the rare earths company in late-2025. EFA is already backing the company with $US533m of loans. In addition, the Government’s National Reconstruction Fund has provided $200m in funding.