What’s going on with the Arafura share price today?

The Arafura Rare Earths Ltd (ASX: ARU) share price was out of form on Tuesday.

The rare earths developer’s shares ended the day 1.5% lower at 35 cents.

This was driven by weakness in the materials sector, which offset the release of a positive announcement this afternoon.

The S&P/ASX 200 Materials index fell 1% on Tuesday amid significant weakness in the battery materials industry.

What’s happening with the Arafura share price today?

This afternoon, Arafura revealed that the Mining Management Plan (MMP) for its 100% owned Nolans Neodymium-Praseodymium (NdPr) project has been approved by the Northern Territory Government.

Deputy Chief Minister and Minister for Mining and Industry, the Hon Nicole Manison, advised that the application for an authorisation of the Nolans Rare Earth Project under section 36 of the Mining Management Act 2001 has been approved and authorisation 1127-01 granted.

This mining authorisation allows Arafura to mine, construct, and operate the Nolans Project.

Arafura’s managing director, Gavin Lockyer, was pleased with the news. He said:

This approval validates the enormous amount of hard work undertaken since ramping up the Environmental Impact Studies in 2014. It provides the framework, along with our ESG commitment to transparency and openness, that will ensure we minimise the impact of the Nolans Project on the unique Central Australian Arid Zone environment.

This approval, following the recent Hyundai/Kia Offtake Agreement and Project Update, adds to the momentum that should allow Arafura to commence procurement and construction, with FID expected to occur in early 2023.

The Arafura share price remains up over 50% since the start of 2022.

The post What’s going on with the Arafura share price today? appeared first on The Motley Fool Australia.

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More reading

• Why did the Arafura share price surge over 7% higher on Friday?
• Why Arafura Rare Earths, BHP, Capricorn Metals, and Newcrest shares are rising today
• Arafura share price rockets 10% on Hyundai and Kia rare earths deal
• Why have shares in ASX 300 rare earths miner Arafura just been halted?
• Could this news be helping the Sayona share price light up today?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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