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

Location
Northern Territory, Australia.

Project Owner/s
Australian mining company 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 (NdPr) 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 NdPr 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
Commercial production and ramp-up is expected to start by December 2028.

Latest Developments
Arafura Rare Earths has signed a binding offtake term sheet with global physical trader Traxys North America to support the revitalisation and onshoring of domestic manufacturing across automotive, defence and advanced technologies sectors in the US.

Traxys plans to supply 500 t/y of NdPr oxide and 7.5 t/y of dysprosium/terbium oxide – produced at Arafura’s Nolans project – to the US supply chain, including potential supply to the US Export-Import Bank of the United States-managed Project Vault, which aims to provide a tactical buffer against critical minerals supply shocks.

This agreement is in addition to the March 2025 agreement concluded between Arafura and Traxys Europe for the supply of up to 300 t/y of NdPr oxide.

The agreement with Traxys North America is for five years, with the option to extend the agreement by two years by mutual agreement.

Pricing will be in US dollars and based on a global, seaborne pricing index such as the recently established Benchmark Minerals Intelligence indices or S&P’s Global Platts North America pricing index.

Arafura expects to finalise and execute a long-form offtake agreement before the sunset date of six months from execution of the term sheet.

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.