Arafura closes in on rare earths production

The new kid on the rare earths block Arafura Rare Earths is underway with early works construction at its Nolans rare earths project, 135 kilometres from Alice Springs in the Northern Territory.

According to a recent update, Arafura is advancing enabling works and equipment procurement including sulphanation bake and cooler units, funded by its successful $141 capital raise, including from Hancock Prospecting which raised its holdings in the company to 10 percent.

The construction site was mobilised in February with constructions of roads and earthworks and a construction camp underway.

Nolans also has support from the Northern Australia Infrastructure Facility of $150 million and an in principle support for a loan guarantee of up to US$600 million from German export credit agency Euler Hermes.

Arafura recently executed a binding offtake with wind turbine manufacturer Siemens Gamesa Renewable Energy for the supply of two critical rare earth metals, neodymium and praseodymium (NdPr) which are key to the manufacturer of permanent magnets.

Managing Director Gavin Lockyer said: “We are delighted to have concluded negotiations for our second offtake agreement.

“Siemens Gamesa is the world’s leading manufacturer of offshore wind turbines, and this agreement compliments our strategy to create supply diversification into the renewable and E-mobility sectors.”

Arafura’s other offtake agreement is with Hyundai which will me supplied with NdPr oxide or NdPr metals.

Nolans is considered one of the world’s largest new rare earths and could supply 10 percent of the world’s demand for the metals used in rare earths magnets.

The company plans a hydrometallurgical plant, sulphuric acid plant and other works.

Other areas of the project such as the beneficiation plant, power station and process control system have already moved fully into tendering prior to the commencement of detailed design.

Image: Arafura Rare Earths/Nolans project, Northern Territory