Canberra loan backs Nolans rare earths project

The federal government has provided debt financing to the massive Nolans rare earths project, 135 kilometres from Alice Springs in the Northern Territory.

Arafura Rare Earths announced that the federal government would provide conditions debt finance of US$533 million to catalyse the project’s remaining debt raising.

As reported in @AuManufacturing, Arafura is advancing enabling works and equipment procurement including sulphanation bake and cooler units, funded by a successful $141 million capital raise, including from Hancock Prospecting.

Arafura intends to supply wind turbine manufacturer Siemens Gamesa and Hyundai with NdPr oxide or NdPr metals, and has been hailed as 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 has previously received a Letter of Interest (LOI) from Canadian export credit agency Export Development Canada (EDC) for the provision of financing of up to US$300 million, and support from Germany’s Euler Hermes for up to US$600 million in untied loan guarantees.

The federal funding includes US$125 million debt facility under the government’s Critical Minerals Facility, administered by Export Finance Australia.

Further reading:
Arafura gets debt backing for Nolan rare earths project

Picture: Arafura Rare Earths