Arafura Resources Limited has been given extra time to produce an environmental impact statement for its proposed phosphate and rare earths mine, 135 kilometres north of Alice Springs.

The company has been granted an extra two years by the Northern Territory Government to provide a detailed plan on how the company will prevent water pollution, stop hazardous or radioactive discharges and eventually close down the mine.

Arafura requested the extension so it could provide more detail in its environmental assessment.

The company says the site holds a resource of 18.6 million tonnes.

It is estimated mining will recover approximately up to 100,000 tonnes of ore per annum.

The stockpiled ore will be crushed, washed and upgraded on site and then transported by road and rail for processing.

The mine is estimated to have an operational life of 20 years.