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.
