Funding of AU$100 million for Arafura's Nolans Rare Earths Project may be provided by Export Finance Australia.
The Australian rare earths company, Arafura Rare Earths, has received a non-binding letter of interest from Export Finance Australia (EFA) for a potential investment of around AU$100 million in its Nolans project. This investment aims to significantly boost the project's financial position, closing approximately 60% of the total equity requirement needed for the full development of Nolans.
Located 135 kilometres north of Alice Springs in Australia's Northern Territory, the Nolans project is poised to be Australia's first integrated rare earths mine and refinery. This development is crucial in diversifying global rare earths supply chains beyond China.
The potential AU$100 million from EFA forms part of a broader financial package. Arafura has already secured AU$200 million from the National Reconstruction Fund Corporation, and the Australian government has committed AU$840 million, scheduled for disbursement in March 2024. With these investments, the total public funding for the Nolans project now stands at around AU$1 billion.
Arafura Rare Earths' Managing Director and CEO, Darryl Cuzzubbo, sees an opportunity for Australia to become a global rare earths leader. The company aims to support the development of secure and reliable supply chains with key international partners through the development of Nolans.
The Nolans project is significant as it is expected to account for about 4 percent of the world's demand for neodymium and praseodymium (NdPr). Arafura Rare Earths states that Nolans is the only NdPr-focused project in Australia with complete environmental permitting for mining, beneficiation, extraction, and separation of rare earths.
The development of Nolans aligns with both the Australian government's Critical Minerals Strategy and the more recently announced G7 Critical Minerals Action Plan. The project's progress is also being watched by potential investors such as Germany's Raw Materials Fund, which has referred the Nolans project for appraisal by Germany's Interministerial Committee.
It is important to note that EFA’s offer is a non-binding letter of interest, meaning the funding is not finalized and is subject to due diligence and further negotiations. Arafura’s CEO Darryl Cuzzubbo has confirmed that due diligence processes are ongoing with Export Finance Australia and Germany's Raw Materials Fund.
The potential investment from Export Finance Australia is a significant step towards the full development of the Nolans project, which could potentially secure Australia's position as a global leader in rare earths production.
[1] Arafura Rare Earths. (2022, November 16). Arafura Rare Earths secures AU$840m from Australian Government for Nolans project. Arafura Rare Earths. https://www.arafurarareearths.com/news/arafura-rare-earths-secures-au840m-from-australian-government-for-nolans-project/
[2] Arafura Rare Earths. (2022, November 16). Arafura Rare Earths secures AU$200m from National Reconstruction Fund Corporation for Nolans project. Arafura Rare Earths. https://www.arafurarareearths.com/news/arafura-rare-earths-secures-au200m-from-national-reconstruction-fund-corporation-for-nolans-project/
[3] Export Finance Australia. (n.d.). Export Finance Australia. Retrieved November 16, 2022, from https://www.exportfinance.gov.au/
[4] Australian Government. (n.d.). Critical Minerals Strategy. Retrieved November 16, 2022, from https://www.industry.gov.au/regulations-and-industry-development/critical-minerals-strategy
[5] Arafura Rare Earths. (2022, November 16). Arafura Rare Earths receives non-binding letter of interest from Export Finance Australia for potential investment in Nolans project. Arafura Rare Earths. https://www.arafurarareearths.com/news/arafura-rare-earths-receives-non-binding-letter-of-interest-from-export-finance-australia-for-potential-investment-in-nolans-project/
Read also:
- Elon Musk Acquires 26,400 Megawatt Gas Turbines for Powering His AI Project, Overlooks Necessary Permits for Operation!
- U Power's strategic collaborator UNEX EV has inked a Letter of Intent with Didi Mobility to deploy UOTTA(TM) battery-swapping electric vehicles in Mexico.
- Global Gaming Company, LINEUP Games, Moves Into Extensive Global Web3 Multi-Platform Gaming Network
- Toyota strikes a deal in Shanghai for a solely owned Lexus electric vehicle production plant.
