7 November 2022
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 sever year term, which may be extended for a further five 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 four of the agreement, as production ramps up.
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, 135 kilometres 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.
Quotes from Chief Minister Natasha Fyles:
"The Territory Labor Government is working very hard to make the Northern Territory the best place for exploration and mining investment in Australia.
"Today's announcement is another huge step forward for the Nolans Project in securing a Final Investment Decision, supporting our plan for the NT to become a globally-significant producing, processing and manufacturing centre for critical minerals."
Quotes from Minister for Mining and Industry Nicole Manison:
"Today's milestone is great news for the Northern Territory, great news for local jobs and great news for the environment.
The Northern Territory is rich in resources and we are on track to deliver a $40 billion economy by 2030, as we become a world class supplier of critical minerals.
Today's announcement shows Arafura's rare earths project in Central Australia is strategically important for global supply chains and electric vehicles."
Quotes from, Managing Director Arafura Resources Gavin Lockyer:
"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."
Northern Territory Government
