PERTH (miningweekly.com) – The renewables arm of US energy major General Electric (GE), GE Renewable Energy, has inked a non-binding memorandum of understanding (MoU) with ASX-listed Arafura Resources over a potential neodymium praseodymium (NdPr) offtake agreement.
The parties will negotiate a long-term sales agreement for GE to purchase NdPr from Arafura’s Nolans project, in the Northern Territory, subject to Arafura securing project financing for Nolans, and completing the construction and development of the project.
The MoU also outlines a potential strategic equity investment by GE in Arafura that will be considered and negotiated in due course.
“The signing of this MoU to collaborate with a Tier 1 OEM is a terrific outcome. Long-term, Nolans NdPr may be used in magnets critical for power generation from GE’s Haliade-X 12 MW, one of the most powerful offshore wind turbines on the market. It is very gratifying that a new supply chain model, along with transparency of the value chain, will ensure we know exactly where our NdPr will be used, whether it is in a particular electric vehicle model or a series of wind turbine,” said Arafura MD and CEO Gavin Lockyer.
“The contribution of Nolans NdPr to enable clean energy technologies to decarbonise the world is becoming more and more apparent.”
GE Renewable Energy VP and chief technology officer Danielle Merfeld said that the MoU was another example of GE’s efforts to develop strategic collaborations that can help the company accelerate the energy transition.
“Working with Arafura gives us a new and exciting option to obtain reliable, sustainable and competitive sources of key materials going forward that will help us lower the cost of renewable energy.”
The A$90.8-million Nolans project will leverage Australia’s mineral processing expertise to develop rare earth separation technology not currently available here now, creating 650 jobs at the peak of construction and new high-value export opportunities.
An updated feasibility study estimated that over a mine life of 38 years, the project would produce 4 440 t/y of NdPr oxide and 474 t/y of heavy rare earth oxide, as well as 144 393 t/y of phosphoric acid.
The MoU, which was unveiled during the Sydney Energy Forum, was welcomed by the governments of both the US and Australia.
Australia's Minister for Trade and Tourism Don Farrell said the agreement showed the real potential for Australia to foster strong commercial critical minerals partnerships with its major trading partners.
“It is also an indication of this government’s commitment to the development of the Australian critical minerals sector,” Farrell said.
Minister for Resources and Northern Australia Madeleine King said the MoU was an example of how US and Australian businesses were partnering and investing to secure supply chains and accelerate the global transition to net-zero emissions.
“Australia is determined to play a constructive role in international efforts to reduce emissions, while preparing Australia to become a clean energy superpower,” King said.
Arafura on Wednesday reiterated that the MoU is non-binding, and that the two companies had not concluded any commercial terms in relation to the sale and purchase of NdPr or any potential strategic investment. The company said that there was no certainty as to the timing and likelihood of binding agreements being entered into.