Arafura Secures Another $300 Million to Advance Rare Earth Project

by | 27. May 2024 - 09:36 | Economy

The Australian company seeks to mine the Nolans rare earth project in the country’s north – almost 70% of the debt is now financed.

Australian mining company Arafura Rare Earths Limited has received $300 million in debt financing from Canada’s export credit agency to develop the Nolans project in Australia’s Northern Territory. According to the company (PDF), 68 percent of the project’s debt is now financed, bringing the company closer to a final investment decision. Export Development Canada’s support is tied to a supply agreement between Arafura and General Electric and partnerships with Canadian companies. General Electric plans to use neodymium-praseodymium (NdPr) from the Nolans project to supply its offshore wind turbine manufacturing facility in France.

Arafura’s Managing Director, Darryl Cuzzubbo, commented on the financing, saying that the support from Export Development Canada “signifies the increasing geostrategic importance of the Nolans Project and securing global diversity in the NdPr supply chain.”

Other companies interested in Arafura’s raw material include South Korean carmakers Hyundai and Kia, which have already signed off-take agreements with the miner. Korea Eximbank, the official export credit agency of South Korea, has signed a letter of interest for $150 million in debt financing for the project, which is directly tied to the deals with the carmakers.

Photo: iStock/nattanan726

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