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.
Image source: Getty Images
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.
