Peter Roberts
27 May 2024 09:16
Arafura Rare Earths has secured conditional approval for up to US$300 million in debt finance from Export Development Canada (EDC) backing its Nolans rare earths project near Alice Springs in the Northern Territory.
This builds on the Australian government’s conditional debt finance of US$533 million and should speed the closure of financing on a project that will supply wind turbine manufacturer Siemens Gamesa and Hyundai with NdPr oxide or NdPr metals.
Hailed as one of the world’s largest new rare earths projects, Nolans could supply 10 percent of the world’s demand for the metals used in rare earths magnets.
EDC’s support of the Nolans project is linked to the non-binding Memorandum of Understanding with supply contracts from Canadian companies.
Arafura’s Managing Director Darryl Cuzzubbo said: “Debt financing from EDC signifies the increasing geostrategic importance of the Nolans project and securing global diversity in the NdPr supply chain.
“EDC has responded strongly to Nolans as a strategic opportunity that will underpin the electrification economy.”
NdPr is critical in electrical vehicles, wind turbines and robotics.
“This announcement today brings us closer to a final investment decision on the Nolans Project.”
China is currently the dominant supplier of NdPr metals.
Further reading:
Canberra loan backs Nolans rare earths project
Picture: Arafura Rare Earths