Arafura Rare Earths ltd, formerly Arafura resources limited, is a former mineral exploration company focusing and developing on the Nolans rare earths project, near Alice Springs, NT. It’s an impressive feat, as it is the only advanced, fully permitted, ore to oxide project of scale outside China, and ARU plans to do the refining on site. Entities associated with Gina Rinehart own close to 10%.
Targeted Market
Its rare earth products will include the higher priced metals needed to make permanent magnets, neodymium and praseodymium (NdPr), which are utilised in energy transition applications such as electric vehicles and offshore wind turbines.
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Planned Operations in the Northern Territory
The Nolans project is planned to start production in late 2025 and is partly funded by a A$141m capital raising. Planned production is 4,440 tonnes a year of NdPr oxide over a 38 year mine life. The total capital cost is A$1,590m. It is negotiating agreements with Societe Generale, National Australia bank and the German credit company, Euler Hermes Altiengesellschaft, in order to finance the project, with the latter possibly providing a US$600 million option, conditional on garnering agreements with german companies.
Investor Summary
Well advanced project, good resource and product to be in demand. To see our full research on Arafura Rare earths, including Buy, Sell, Hold recommendations, as well as in depth mining and rare earths analysis take out a free 14 day trial now!
