Nolans Rare Earths Project
Australian company Arafura Rare Earths Limited is focused on the development of rare earth minerals, particularly neodymium and praseodymium (NdPr), at its Nolans Project located 135km from Alice Springs. These elements are crucial for various technologies, including electric vehicles and wind turbines. The company is aiming to become a leading global supplier of NdPr oxide, produced at the mine site.
Nolans is one of the world’s largest undeveloped Neodymium and Praesodymium resources and plans to be Australia’s first fully integrated mining and rare earth separation project. The deposit has the potential to contribute up to 4% of the world’s magnet rare earths supply.
The Nolans Project is fully permitted and is ready to commence construction upon reaching a final investment decision (FID) in 2026.
Arafura has already completed an A$40 million early site works to de-risk the project schedule, including access roads and accommodation, and has signed a gas supply agreement.
Arafura has conditional credit approvals for more than US$1 billion underpinned by A$840 million debt commitment from the Federal Government, through the North Australia Infrastructure Facility and Export Finance Australia; A$200 million investment in convertible notes from the National Reconstruction Fund Corporation; and lending and loan guarantees from overseas export credit agencies, including Euler Hermes (Germany), KEXIM (South Korea) and Export Development Canada, as well as other commercial lenders.
In addition, Arafura has secured 66 per cent of its 80 per cent binding offtake target, with binding offtake agreements secured with Hyundai Motor Company and Kia (South Korea), Siemens Gamesa (Germany) and Traxys Europe SA (Luxembourg).
Arafura is seeking to raise a further US$660 million in equity funding, including potential joint venture opportunities to reduce the required equity investment.
Company profile
Arafura Rare Earths Ltd (ASX: ARU) is focussed primarily on developing the Nolans Project. The company also holds exploration licences in the Aileron-Reynolds region and is in joint venture with Thor Energy PLC (40%) on the Bonya tungsten-copper tenements in Central Australia. Arafura is headquartered in Perth, Australia.
- Investment type: Greenfield
- Status: Approvals in place
- Region: Central Australia, Northern Territory, Australia
- Project value: CAPEX US$1,226 million
- Presented to market by: Arafura Rare Earths Ltd
Download the Nolans Rare Earths Project investment opportunity flyer PDF (775.8 KB).
Disclaimer
This investment opportunity is brought to market by an external proponent. The Northern Territory of Australia exercised due care and skill to ensure that at the time of publication the information contained in this publication is true and correct. However, it is not intended to be relied on as professional advice or used for commercial purposes. Australia's Northern Territory gives no warranty or assurances as to the accuracy of the information contained in the publication and to the maximum extent permitted by law accepts no direct or indirect liability for reliance on its content.