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. 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
Arafura Rare Earths has signed an offtake agreement with wind turbine manufacturer Siemens Gamesa Renewable Energy for the supply of neodymium and praseodymium from the Nolans project.

Under the five-year term, Arafura will supply 200 t/y of neodymium and praseodymium, starting in 2026. This will increase this to 360 t/y in the second year and to 400 t/y in years three to five as production at Nolans ramps up.

Fifty-three per cent of the targeted 85% of yearly production at Nolans is now contracted under long-term sales agreements.

The offtake agreement is expected to support ongoing discussions with German ECA Euler Hermes, which recently provided Arafura with a nonbinding letter of in-principle support for an untied loan guarantee of up to $600-million to support the Nolans project.

The untied loan guarantee of up to $600-million is nonbinding, indicative only, and any final guarantee amount will be determined with reference to the offtake volume processed in Germany, final offtake structures with German companies and neodymium and praseodymium market conditions at the time.

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.