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 is forecast to create more than 600 jobs during the construction phase and sustain an estimated 350 permanent positions through steady-state operations.

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 production is expected from mid-2029

Latest Developments
Arafura has secured a binding five-year offtake agreement with a leading global raw materials trading company to supply 850 t/y of NdPr oxide.

This compares to a supply agreement of 500 t/y having been envisioned in the company's former binding term sheet signed in May this year.

The pricing of the contract will be linked to an independent and transparent global seaborne index such as the recently established Benchmark Minerals Intelligence indices or S&P's Global Platts North America pricing index.

Arafura has said the trader has been tapped under the US government's Project Vault initiative to help build resilient supply chains and secure critical mineral reserves for American manufacturing.

The offtake agreement may be extended twice by two years if mutually agreed to by both parties.

Arafura remains in discussions with more potential offtakers while developing the Nolans project. 

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.