Global investor moves onto Arafura’s register

Japanese financial heavyweight Mitsubishi UFJ Financial Group has taken a notable position in Arafura Rare Earths, emerging as a new substantial shareholder.

An ASX filing shows Mitsubishi UFJ now holds a 5.03 per cent voting interest in Arafura, equivalent to about 234 million shares. The holding places the group above the substantial shareholder threshold and onto the register of the rare earths developer.

The interest is held indirectly through Mitsubishi UFJ’s ownership of more than 20 per cent of global investment bank Morgan Stanley. As a result, the Japanese group has voting power over Arafura shares held across several nominee and custody accounts, including HSBC Custody Nominees (Australia) and Morgan Stanley Australia Securities.

Arafura is advancing the Nolans rare earths project in the Northern Territory, one of Australia’s most advanced developments targeting neodymium and praseodymium. These materials are critical for permanent magnets used in electric vehicles, wind turbines and defence applications.

In August, Export Finance Australia signalled a potential multi-million-dollar investment to support Arafura’s development plans. This followed the Federal Government’s previously announced $200 million commitment through the National Reconstruction Fund Corporation, underscoring the project’s strategic importance to Australia’s critical minerals ambitions.

The emergence of one of Japan’s largest financial institutions on Arafura’s register highlights growing offshore interest in critical minerals as global players look to secure supply chains outside China.

For Arafura, the backing adds weight to its shareholder base as it continues to progress financing and development plans for Nolans, a project seen as strategically important to Australia’s rare earth ambitions.