Arafura completes debt finance for huge rare earths play

Arafura Rare Earths has secured conditional approval for up to US$115 million in loan guarantees from a German inter-ministerial committee – the final approval required to complete the senior debt structure for its giant Nolans rare earths project.

Earlier this week the Export-Import Bank of Korea (KEXIM) gave its conditional approval, with the latest approval from the Euler Hermes Aktiengesellschaft (Euler Hermes) committee completing the US$775 million senior debt funding required for the critical minerals mine and refinery in the Northern Territory.

Nolans is a key project in western nations plans to rid itself of Chinese dominance in the supply of Neodymium and praseodymium (NdPr) metals critical to electrification and the renewable energy transition.

Nolans could supply 10 percent of the world’s demand for the metals used in rare earths magnets, with cornerstone customers to be Siemens Gamesa, Hyundai and Kia.

Arafura’s Managing Director Darryl Cuzzubbo said Arafura had reached another significant milestone.

Cuzzubbo said: “We continue to demonstrate the increasing geostrategic importance of the Nolans Project and developing a diversified global NdPr supply chain, this time by securing German export credit agency support.

“This agreement is linked to offtake with German-based companies, including our key customer Siemens Gamesa, who are global leaders in building wind turbines to advance the energy transition.

“We look forward to working closely with Euler Hermes as we progress the Nolans Project.”

Nolans is also backed by conditional Commonwealth Government approval for a US$533 million debt financing package, including up to US$200 million under the Critical Minerals Facility.

Further reading:
Arafura Rare Earths closer to securing debt for giant project

Image: Arafura Rare Earths