Name of the Project
Nolans neodymium/praseodymium rare earths project.

Location
Northern Territory, Australia.

Project Owner/s
Arafura Resources.

Project Description
The Nolans project will encompass a mine, a process plant ­– comprising beneficiation, extraction and separation plants – and related infrastructure.

An updated feasibility study has optimised the production schedule and financial outcomes of the project. The pit optimisations, mine designs, ore reserves and mining inventory are unchanged from the updated mining study in March 2020.

The project has ore reserves of 29.5-million tonnes grading 2.9% total rare-earth oxides, 13% phosphorous pentoxide and neodymium/praseodymium enrichment of 26.4%.

The updated feasibility study has reported a minor increase in the concentrate processing capacity of the process plant – from 330 000 t/y to 340 000 t/y. The definitive feasibility study was based on 300 000 t/y.

The beneficiation capacity has increased from one-million tonnes a year to 1.5-million tonnes later in the life-of-mine to accommodate lower run-of-mine head grades.

Minor changes to the hydrometallurgical recovery of rare earths and phosphorous pentoxide, resulting from the changes to the processing plant design, have also been reported.

The project is expected to produce 4 440 t/y of neodymium/praseodymium oxide over its 38-year mine life. The production of middle and heavy rare-earth oxides is estimated at 474 t/y and phosphoric acid at 144 393 t/y.

Potential Job Creation
The project will create 650 jobs at the peak of construction and new high-value export opportunities.   

Net Present Value/Internal Rate of Return
In the base case, the project has a net present value, at an 8% discount rate, of A$2.4-billion and an internal rate of return of 19.3%.

Capital Expenditure
Preproduction capital is estimated at A$1.39-billion plus A$196-million in contingency.

Planned Start/End Date
First ore-processing is expected in October 2024, with first ore-production expected towards the end of 2024. These dates are contingent on securing funding for the activities required.

Latest Developments
Export Development Canada (EDC) has conditionally approved $300-million in debt financing.

The funding package takes conditional approvals to 68% of the targeted $775-million of senior debt funding for the project, bringing Arafura closer to a final investment decision.

The connection between Arafura and EDC was facilitated by renewable-energy group GE Vernova in recognition of the significance of the Nolans project and its role in diversifying the rare earth materials supply chain for offshore wind turbines.

EDC’s support for the project is linked to the nonbinding memorandum of understanding with GE Renewables and supply contracts from Canadian companies.

The EDC facility will be conditional upon Arafura’s achieving an 80% binding offtake target.

The financing from Canada builds on the backing of the Australian government’s conditional debt financing for the project. Arafura has secured A$150-million from the government’s Northern Australia Infrastructure Facility and $125-million from Export Finance Australia.

The Export-Import Bank of Korea has also issued a letter of interest for up to $75-million.

Key Contracts, Suppliers and Consultants
KBR, Wave International and Arafura’s geological, metallurgical and project personnel (updated definitive feasibility study); Mining Plus (mine planning, design and scheduling, along with mining cost estimation); Simulus (process simulation); and Infinity Corporate Finance (financial modelling).

Contact Details for Project Information
Arafura Resources, tel +61 8 6210 7666 or email arafura@arultd.com.