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

Location
The project is located in the Northern Territory of Australia.

Project Owner/s
Arafura Resources.

Project Description
A definitive feasibility study (DFS) has confirmed Nolans as a globally significant and strategic NdPr project that, once developed, will become a major supplier of these critical raw materials to the high-performance, permanent-magnet market.

The project has ore reserves of 19.2-million tonnes at 3% total rare-earth oxides (TREO) and 13% phosphorous pentoxide.

The project will encompass a mine, a process plant and related infrastructure to be built and located at the Nolans site.

Mining will be conducted using typical drill-and-blast operations, hydraulic excavators and rear dump trucks. The strategic mining schedule is based on an average mining rate for the first seven years of 3.2-million tonnes a year, which average production over the duration of mining is estimated at 7.6-million tonnes a year, with a maximum rate of 11.2-million tonnes a year. Ore from the run-of-mine pad will be trucked 8.5 km to the process plant.

The beneficiation plant and associated equipment are designed to process a maximum of one-million tonnes a year of ore to cater for a variation in ore grade over the life-of-mine (LoM).

The process plant is designed for 300 000 t/y of concentrate, which relates to a nominal 13 343 t/y of TREO equivalent products, with a potential maximum of 14 100 t/y, depending on the mining schedule.

The project is expected to deliver 293 000 t/y of concentrate, producing 4 357 t/y of NdPr oxide,135 808 t/y of phosphorous acid and 13 343 t/y TREO over a 23-year LoM.

Potential Job Creation
The peak construction workforce is estimated at 650, with a steady-state operations workforce of 280 people.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 10% discount rate, of A$729-million and an internal rate of return of 17.43%, with an after-tax payback of five years.

Capital Expenditure
Preproduction costs have been estimated at A$1-billion.

Planned Start/End Date
Project design and construction will take 30 months to complete, with commissioning targeted for early to mid-2022.

Latest Developments
Arafura Resources has signed an additional memorandum of understanding (MoU) for rare-earths products from its NdPr project. It allows for the long-term sale of NdPr oxide from the Nolans project.

This MoU with Chinese magnet manufacturer Baotou Tianhe Magnetics Technology provides a framework for the two companies to negotiate a final offtake agreement for the sale of up to 900 t/y of NdPr oxide.

It also allows for the two companies’ working together to develop further opportunities for long-term NdPr oxide or metal offtake with third party end-users.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

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