Arafura and Hyundai ink MoU for NdPr offtake from Nolans

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Arafura Resources has entered into a non-binding Memorandum of Understanding (MoU) with South-Korean based Hyundai Motor Company for neodymium and praseodymium (NdPr) offtake.

According to the ASX Announcement, the offtake agreement is for the sale of approximately 1,000 – 1,500 tonnes of NdPr Oxide per annum from the Nolans Project over a 7-year term commencing in 2025.

Nolans is Australia’s only shovel-ready Neodymium Praseodymium (NdPr) project, with potential to supply around 5 per cent of world NdPr oxide demand.

First of its kind in Australia and second outside of China, the e Nolans separation plant will produce separated rare earth oxides and enable the development of diversified rare earth supply chains.

Adertisement

“The signing of the MoU represents a fantastic outcome and validates the Tier-1 credentials of the Nolans Project as one of the world’s premier next generation NdPr ore to oxide projects. The Nolans Project is strategically significant for Tier-one customers as it offers scale and supply chain diversification and security that will underpin their EV technologies,” said Arafura’s Managing Director, Gavin Lockyer.

A definitive binding offtake agreement is set to be executed by September 2022, with the two parties committing to engage with relevant Export Credit Agencies to access debt funding and guarantees linked with critical materials procurement for use in Korean-based manufacturing.

The MoU has been welcomed by the Northern Territory Government.

According to the official media release by Chief Minister, Natasha Fyles, Arafura’s announcement is a major step forward for the Nolans Project in securing a Final Investment Decision (FID).

“It is estimated that over 600 jobs will be created during the construction phase of this project and 280 jobs during the operational phase. We are delivering on our promise to make the Territory a world-class hub for resources and critical minerals – creating more jobs, jobs, jobs for Territorians,” said Minister for Mining and Industry, Nicole Manison.

Last March, Arafura Resources was awarded a $30 million MMI grant to construct $90.8 million rare earth separation plant at Nolans.

“We look forward with great optimism about the next steps in the offtake agreement process and the impetus this will provide for the development of our rare earths deposit at Nolans, which is strategically and economically important for the Northern Territory, our local communities and for Australia,” said Mr Lockyer.

“We are delighted with the relationship that we have been developing with Hyundai over a sustained period of time and our growing connection with other organisations in South Korea focused on the electric vehicle market.”

Image credit: https://www.arultd.com/projects/nolans.html