How is Arafura’s Nolans project progressing?

Arafura Rare Earths has made significant strides in advancing its Nolans project, securing key offtake and project funding agreements that support its vision of a complete rare earth magnet supply chain.

In a strategic move, Arafura recently signed a memorandum of understanding (MoU) with the Saskatchewan Research Council, focusing on toll processing of the Nolans project’s SEG/HRE product.

This agreement outlines the pathway to separate dysprosium (Dy) and terbium (Tb) oxides, essential elements for high-performance magnets, from Arafura’s NdPr (neodymium-praseodymium) oxide production.

By integrating Dy and Tb into the supply chain, the partnership reinforces the company’s commitment to delivering a comprehensive rare earth magnet solution.

Alongside its efforts to secure processing channels, Arafura has also made progress in offtake negotiations for NdPr oxide, a critical material for the electric vehicle and renewable energy industries.

The company is currently engaged in discussions to cover 80 per cent of its planned NdPr oxide production via binding long-term offtake agreements.

To date, Arafura has secured agreements with Hyundai and Kia for 1500 tonnes per annum (tpa) and Siemens Gamesa for 520 tpa, representing 58 per cent of its target. Further advanced negotiations with entities across Asia, Europe, and the U.S. could increase this offtake volume significantly.

On the project funding front, Arafura has progressed with securing debt financing, bringing together a diverse group of international export credit agencies and commercial lenders.

Backed by entities like Export Finance Australia and the Northern Australia Infrastructure Facility, the senior debt facilities demonstrate strong global support for the Nolans project’s strategic importance.

Arafura’s interconnected approach to securing both offtake and funding highlights its commitment to creating a stable, diversified rare earth supply chain outside of China, an initiative attracting growing interest from international investors.