Australia has made a groundbreaking investment in rare earths with the nation’s first combined mine and refinery in the Northern Territory.

The Albanese government on Thursday announced up to $840 million for the project that will be operated and managed by Australian exploration company Arafura Rare Earths.

“This project is a major vote of confidence in the North Territory, which continues to punch above its weight in global trade,” Prime Minister Anthony Albanese said.

Chief Minister Eva Lawler said the mining and processing of critical minerals was a priority for the territory to create more local jobs.

Located 120km north of Alice Springs, the Gina Rinehart-backed Arafura project will create more than 200 jobs during construction and more than 125 ongoing jobs, including 20 per cent for the Indigenous community.

Australia has some of the world’s largest deposits of critical minerals and rare earths which are in demand for the energy transition, defence and advanced communications.

This post was originally published on Michael West.