Australia’s export credit agency issues a Letter of Interest for the Nolans project.
Australian rare earth company Arafura has received a non-binding Letter of Interest from Australia’s export credit agency, Export Finance Australia (EFA), for potential further financing to support the development of its Nolans project in the Northern Territory (PDF). While the terms and size of the funding are still subject to due diligence, Reuters reports the amount to be around $100 million, citing sources familiar with the matter.
Nolans is set to be Australia’s first integrated rare earths mining and processing facility in the Northern Territory. Notable companies expressing interest in its rare earth products, particularly neodymium-praseodymium, include South Korean automotive giants Hyundai and Kia, along with U.S. conglomerate General Electric, which plans to use the material at its offshore wind turbine production hub in France. Government-backed investments, such as those from Canada’s export credit agency and South Korea’s Eximbank, are strategically linked to long-term offtake agreements. The Australian government has also repeatedly signaled its willingness to back the project (we reported).
The latest development comes as Arafura also advances talks with Germany’s raw materials fund, which entered the evaluation phase for a potential investment in July.
Photo: agnormark via Canva
