Staff Reporter
23 July 2024 14:58
Arafura Rare Earths will conduct a pre-feasibility study (PFS) of a potential Phase 2 expansion of rare earths processing capacity at its giant Nolans project in the Northern Territory.
The decision to embark on the $15 million study follows an in-house preliminary study which looked at the potential of the rare earths deposit to support a 150 percent increase in proposed processing capacity.
The study also considered whether a potential expansion to the processing facility could enable the company to process third-party rare-earth feedstocks including monazite concentrates as a downstream processing hub.
“This would enable Arafura to operate a leading rare earths processing facility in Australia, underpinning a diversification of the global supply chain.
“The results from the…study were positive.”
Managing Director and CEO Darryl Cuzzubbo also announced the completion of Arafura’s debt funding strategy.
Cuzzubbo said: “Securing conditional approval for more than US$1 billion of debt funding and completion support is an incredible result and one that reinforces the value of Nolans in diversifying a global NdPr supply chain.
“The Australian government has led the way in debt funding through EFA and NAIF, which unlocked international support from export credit agencies in Korea, Canada and Germany.
“The cost overrun facility and standby liquidity facility have further derisked the Project for commercial lenders and investors.
“The significant support we have received from our commercial lenders, both domestic and international, reinforces the role of Nolans in a globally diversified rare earth supply chain.”
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 and has announced cornerstone customers in Siemens Gamesa, Hyundai and Kia.
The planned PFS will explore two options, building a discrete second processing plant or an integrated expansion of existing processing capacity.
Further reading:
Arafura completes debt finance for huge rare earths play
Picture: Arafura Rare Earths