The Northern Territory Government welcomed the announcement that Arafura Rare Earths and Hyundai Motor Company inked an offtake agreement.
The offtake agreement calls for Arafura’s Nolans Project to provide NdPr to Hyundai for a five-year period that can be extended by mutual consent.
NdPr is Neodymium-Praseodymium oxide, an element utilised in the production of electric motors for electric vehicles that is highly coveted by companies transitioning to green energy.
The initial supply will be 600 tonnes per year in 2025, escalating to 1,500 tonnes by year four of the deal as production ramps up.
According to the State Government, the announcement demonstrates that the Northern Territory is the place to be for extracting, processing, and manufacturing essential minerals for a greener future.
Chief Minister Natasha Fyles said the Territory Government is working extremely hard to make the Northern Territory the finest site in Australia for exploration and mining investment.
“Today’s announcement is another huge step forward for the Nolans Project in securing a Final Investment Decision, supporting our plan for the NT to become a globally-significant producing, processing and manufacturing centre for critical minerals,” Chief Minister Fyles stated.
The Nolans Project, managed by Arafura Resources, will feature a mine, processing plant, and supporting infrastructure 135 kilometres north of Alice Springs.
It’s anticipated there will be 620 construction jobs and 280 ongoing full-time jobs once the mine is operational.
Minister for Mining and Industry Nicole Manison said Northern Territory is rich in resources, and the State is on course to generate a $40 billion economy by 2030 as the State becomes a world-class provider of essential minerals.
“Today’s announcement shows Arafura’s rare earths project in Central Australia is strategically important for global supply chains and electric vehicles,” Minister Manison stated.
According to Arafura Resources Managing Director Gavin Lockyer, the announcement lays the groundwork for a long-term cooperation with Hyundai, a globally known vehicle dealer.
“I thank the Northern Territory government for their ongoing support and I’m excited for the future of our Nolans project, in the heart of Australia,” Lockyer said.
