PERTH (miningweekly.com) – Rare earths developer Arafura Rare Earths has received a letter of interest from Canadian credit export agency Export Development Canada (EDC) for the provision of a potential $300-million in financing for the Nolans rare earths project, in the Northern Territory.
Arafura on Tuesday said that the indication of support from the EDC was linked to a strategic arrangement between the export credit agency and General Electric Company (GE), with which Arafura signed a memorandum of understanding in 2022 relating to the supply of neodymium praseodymium (NdPr).
GE is also working with Arafura to supply cogeneration power plant technology including its aeroderivative LM2500 gas turbine and associated equipment to Nolans’ independent power provider, to support the power and heat requirements of the project’s processing facility.
“We are delighted to receive indicative support from EDC for the Nolans project. This is further demonstration of the strategic significance that international governments place on the project and its capacity to provide a sustainable supply of critical NdPr to meet the needs of major businesses in key global jurisdictions,” said Arafura MD Gavin Lockyer.
“We are proud to include GE among the tier-one OEMs associated with offtake from Nolans, and welcome GE’s provision of its Aero power generation technology for the project.”
EDC’s support is subject to standard due diligence procedures. The potential funding from EDC would likely reduce the proposed $510-million debt financing facility targeted by the mandated lead arrangers and bookrunners, Arafura said.
Capital costs to develop Nolans have been estimated at A$1.39-billion pre-production, and a A$196-million contingency, with the project expected to produce 4 440/t of NdPr oxide over a mine life of 38 years.