Why is the Arafura Rare Earths share price rocketing 16% on Wednesday?

The Arafura Rare Earths Ltd (ASX: ARU) share price is back on form on Wednesday.

In afternoon trade, the rare earths developer’s shares are up 16% to 41 cents.

Why is the Arafura share price racing higher?

The strong gain by the Arafura share price on Wednesday appears to have been driven by the release of an announcement yesterday afternoon which was overshadowed by a broad selloff in the battery materials space.

So, with battery materials shares recovering today, investors seem to be paying more attention to the announcement.

What did Arafura announce?

Yesterday’s announcement revealed that the Mining Management Plan (MMP) for the company’s 100% owned Nolans Neodymium-Praseodymium (NdPr) project has been approved by the Northern Territory Government.

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

Arafura’s managing director, Gavin Lockyer, commented:

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 post Why is the Arafura Rare Earths share price rocketing 16% on Wednesday? appeared first on The Motley Fool Australia.

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More reading

• Why Arafura, Nufarm, Pilbara Minerals, and Whitehaven Coal are charging higher
• What’s going on with the Arafura share price today?
• 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

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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