$600 million guarantee for development of Nolans rare earth deposit.
Australia’s mineral resources, including rare earths, are attracting increasing interest from countries that want to diversify their supply chains, i.e., become less dependent on China. Perth-based mining company Arafura, for example, has off-take contracts for rare earth oxides with South Korea’s Hyundai Group and General Electric.
It was announced Wednesday that Arafura has also received a $600 million loan guarantee from credit insurer Allianz Trade (formerly known as Euler Hermes) for the development of the Nolans rare earths deposit. The guarantee is conditional on neodymium-praseodymium (NdPr) supply contracts being signed with companies based in Germany, Reuters news agency reports. Further processing must also take place in Germany. An application to the German government is also required for approval, writes industry website Australian Mining.