The Arafura Rare Earths Nolans Project 135km north of Alice Springs has been declared the first Significant Project under the Northern Territory Coordinator Act.
That provides a clear and faster pathway through NT government processes for projects of profound economic significance.
The open-cut mine and rare earths processing plant will be the first integrated project of its kind in Australia, with construction expected to begin in September.
Arafura's final investment decision on May 21 to build its Nolans Project marked a major milestone as the West seeks to reduce its economic reliance on China.
China mines more than half the world's rare earths and refines as much as 90 per cent of global production.
Rare earths contain essential elements and alloys that are key to modern technologies with applications in defence, renewable energy, robotics and advanced electronics.
Territory Coordinator Stuart Knowles, appointed under the NT Coordinator Act to oversee and fast-track NT projects of profound significance, said Nolans was exactly the kind of project the Act was built to facilitate.
"As Australia's first fully integrated ore-to-oxide rare earths facility, this project requires high-level, cross-government coordination to move at pace," he said.
Chief Minister Lia Finocchiaro said the project highlighted the critical role the NT was playing in supporting Australia's economy and national security.
"As the largest mining investment in Territory history, Nolans will create jobs, support local businesses and attract investment, while helping Australia and its allies secure reliable supplies of critical minerals."
"We'll make sure that this globally significant project has the stewardship through government that it needs to be successful," Ms Finocchiaro told reporters in Darwin on Monday.
Arafura Managing Director Darryl Cuzzubbo said the Significant Project designation showed the NT government understood the vital importance of the Nolans mine in global terms.
"Over the next 10 years or so, demand for rare earths for advanced electronics, robotics and electric vehicles will at least double," he said in a statement.
"We can bypass the China supply chain and put the Territory and Australia in a world-leading position to supply rare earths to the US, Europe and Asia."
Arafura's head of NT and Indigenous Affairs Stewart Forrest told reporters the company had a "great relationship" with traditional owners and the Central Land Council representing their interests.
The Territory Coordinator's powers would help unlock benefits of the project for traditional owners, he said.
The miner became the first company to secure support under a federal government plan to build a rare earths strategic reserve.
Arafura, in which Gina Rinehart's Hancock Prospecting holds a more than 15 per cent stake, has received roughly $1.2 billion in taxpayer support so far.
Nolans is expected to create 600 jobs during construction, sustain 350 permanent positions during steady-state operations and have a 38-year mine life.
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