Magnetics Business & Technology - July/August 2022 - 31

INDUSTRY NEWS
Cards Falling into Place for Arafura's Neodymium Project in Australia
tion with the Korean Government Agency KOMIR. The agreement
was signed by Mark Southey, chairman of Arafura (seated
left) and Kyu-Yearn Hwang (seated right), president of KOMIR.
Arafura and KOMIR will focus on expanding cooperation in
several areas including information sharing on the development
of the Nolans project for participation by Korean investors, the
import of rare earth products into Korea and the use of strategic
stockpiling.
Amidst skyrocketing prices for neodymium rare earths, with $30
million in new funding from the Australian government, and with
South Korea stepping up to position itself as a favored buyer,
Arafura Resources is gaining momentum in its trek to become
an important new supplier of the prized magnetic mineral. The
company's Nolans Project in northcentral Australia is shovelready
and can be a significant source of Neodymium-Praseodymium
(NdPr), the company says. Key investment decisions
about proceeding with the project are due later this year.
As a long-term, capital-intensive undertaking the project is enjoying
a big lift from rising prices and demand for its commodity.
In its latest quarterly update issued April 29, Arafura notes that
NdPr prices have continued to rise, hitting above US$165/kg on
March 22. This posts a gain of more than triple the price of less
than $45 two years earlier.
China is increasing output, but global demand remains high
and supplies are tight, the company noted. China's Ministry of
Industry & Information Technology increased official rare earth
oxide quotas during the quarter by 20% from 162,000 tons to
194,000 tons due to supply shortages and surging demand for
renewable and green energy applications. Total official Chinese
supply is now mainly controlled by new entity China Rare
Earth Group and China Northern Rare Earth Group following
the strategic reorganization of rare earth assets to facilitate
greater market operational oversight and pricing power. Supply
of NdPr from China's southern processing provinces remains
tight with limited availability brought on by government restrictions
and suspension of rare earth mines, and processing facilities
unable to meet newer operating standards set by MIIT.
Meanwhile, Arafura was awarded a grant of $30 million in
March from the Australian government to contribute to the construction
of a $90 million rare earth separation plant at Nolans.
Located 135 kilometers north of Alice Springs in the Northern
Territory, it has the potential to supply
around 5% of world NdPr oxide demand, figures Arafura. " This
grant is an exciting milestone for Arafura, recognizing the
strategic significance of the Nolans Project and its place in
the future of critical minerals processing in Australia, " Arafura
Managing Director Gavin Lockyer said.
In another important step for the company, South Korea has
come forward to position itself as a favored trading partner for
purchasing output from the project, generally seen as a move
to bolster the supply chain of Neodymium magnets for its automotive
and windpower industries.
Earlier this year, Arafura signed a joint statement of cooperawww.MagneticsMag.com
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July/August 2022 * Magnetics Business & Technology 31
" The coming 12 months is a particularly significant period as we
continue to work toward a final investment decision for Nolans
in the second half of 2022, while simultaneously progressing
advanced negotiations on senior debt facilities and offtake
agreements, " said Southey at the ceremony. For more info, see
www.arultd.com.
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Magnetics Business & Technology - July/August 2022

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