Arafura Resources Ltd has signed a memorandum of understanding (MoU) with JingCi Material Science Co Ltd for the supply of neodymium-praseodymium (NdPr) oxide from its Nolans Project in the Northern Territory.
The non-binding MoU envisages a long-term supply to JingCi of up to 900 t per annum of NdPr oxide, representing a quarter of Nolans’ forecast annual output of 3,600 t.
Arafura Managing Director Gavin Lockyer said: “We are delighted to have signed the MoU with JingCi and look forward to working with them to negotiate a final offtake agreement. This is an important step in the company’s efforts to arrange financing for the Nolans project and is the result of a lot of hard work by our team.”
The company is also negotiating a number of offtake MoUs for the remaining NdPr oxide from Nolans, as well as for other rare earth products and phosphoric acid.
Arafura started developing a comprehensive mining management plan (MMP) for Nolans last month, which follows confirmation of design from the definitive feasibility study progression.
The company anticipates submitting the MMP to the Northern Territory Department of Primary Industry and Resources in early 2019.
Final project construction and operating approvals on granted mining licences are obtained when the department approves the activities in an MMP and issues a mining authorisation.
Arafura expects the near-contemporaneous grant of the Nolans project mining licence and issuing of the mining authorisation in the first half of 2019.
