PERTH (miningweekly.com) – Rare earths developer Arafura Resources has reduced the operating costs at its Nolans project, in the Northern Territory, by some 7.4%, following a review of an optimisation programme.
At nameplate production, the Nolans project was expected to produce at an operating cost of A$14.51/kg, compared with the previous estimate of A$15.67/kg.
Arafura told shareholders on Wednesday that the decrease in operating costs reflected a material reduction in sulphuric acid and process residues, which were expected to impact favourably on the project’s environmental and community risks.
A final outcome of the optimisation programme was expected shortly.
Meanwhile, Arafura had also undertaken a review of equipment and re-estimated capital costs for the project, which did not result in any significant change in capital expenditure of A$1.4-billion.
Arafura was hoping to start production at the Nolans project in 2019, with production targeted at 20 000 t/y of rare earth oxide equivalent.