Major milestone for Arafura Rare Earths
The Northern Territory Government has welcomed a milestone announcement by Arafura Rare Earths that they’ve signed a binding offtake agreement with South Korean based Hyundai Motor Company.
The offtake agreement is for the supply of NdPr from Arafura‘s Nolans Project to Hyundai over a 7 year term, which may be extended for a further 5 years by mutual agreement.
NdPr is Neodymium-Praseodymium oxide, an element used in the making of electric motors for electric vehicles, and is highly valued by companies making the green energy transition.
Initial supply is expected in 2025, and will be 600 tonnes per year, increasing to 1,500 tonnes by year 4 of the agreement, as production ramps up.
Managing Director Arafura Resources Gavin Lockyer said, “We are delighted to have signed our first binding offtake agreement in relation to the Nolans Project.
This establishes the foundation for a long term partnership with globally respected automotive dealer Hyundai.
I thank the Northern Territory Government for their ongoing support and I’m excited for the future of our Nolans Project, in the heart of Australia.”
Today’s announcement is proof the Northern Territory is the place to be when it comes to producing, processing and manufacturing critical minerals for a greener future.
The Nolans Project managed by Arafura Resources will include a mine, process plant and related infrastructure, 135km north of Alice Springs.
It’s expected there will be 620 jobs during construction and 280 full-time on going jobs once the mine is in production.