Junior mining firm Arafura Resources Ltd (ASX: ARU) revealed on Monday a scientific breakthrough that could easily position the company as the world's major source of rare earths, which are being utilised for industrial purposes such as the manufacture of some batteries, lasers and x-ray machines.

The company, which currently runs the Nolans rare earths project in the Northern Territory, reported that scientists working at the Australian Nuclear Science and Technology Organisation (ANSTO) were able to separate middle rare earth oxides with heavy rare earth oxides.

Arafura chief executive Dr Steve Ward hailed the development as a significant milestone for the company's goal of "becoming the pre-eminent supplier of rare earth oxides to the world from operations wholly within Australia."

At present, the world draws much of its rare earths requirements from China, the number one producer of the elements, though Australia and a host of other countries are fast catching up in providing the emerging mining resource.

Shares of Arafura Resources immediately picked up values on the heels of the discovery news and as of 1122 AEST on Monday, the company's stocks were trading at 95.5 cents, jumping by 6.5 cents or 7.3 percent from previous trading sessions.