The big winners from the Australia-US critical minerals deal

Core Insights - The Australian mining sector is experiencing heightened activity following a critical minerals deal between the US and Australia, which has generated significant interest and discussions at the International Mining and Resources Convention (IMARC) in Sydney [1][2] Group 1: Deal Overview - The agreement exceeded expectations, providing not only a framework for negotiations but also commitments for investment from the US [2] - Arafura Rare Earths and a joint venture between Alcoa and Sojitz Corp emerged as major beneficiaries of the deal [2] Group 2: Arafura Rare Earths - Arafura received a letter of interest from the Export-Import Bank of the United States for up to $300 million to support its $1.2 billion Nolans project in the Northern Territory [3] - The Australian government announced a $100 million equity investment in Arafura's Nolans project through Export Finance Australia, with Arafura having already invested A$60 million ($39 million) in preliminary works [7] - The Nolans project is expected to produce 4,440 tonnes per annum (tpa) of neodymium-praseodymium and 573 tpa of mixed middle-heavy rare earths oxide once fully operational [8] Group 3: Alcoa and Sojitz Corp - Alcoa and Sojitz Corp are investigating gallium production as a by-product of alumina from Alcoa's Wagerup refinery, with the Australian government providing up to $200 million in concessional equity finance for the project [9][10] - Alcoa CEO indicated that the project would provide a supply chain outside of China for gallium, which constitutes around 10% of the global gallium market [11] - The goal is to achieve first metal production by 2026, positioning the project as a potential leader in gallium production outside of China [12]