Name of the Project
Nolans neodymium/praseodymium rare earths project.

Location
Northern Territory, Australia.

Project Owner/s
Arafura Resources.

Project Description
The Nolans project will encompass a mine, a process plant ­– comprising beneficiation, extraction and separation plants – and related infrastructure.

An updated feasibility study has optimised the production schedule and financial outcomes of the project. The pit optimisations, mine designs, ore reserves and mining inventory are unchanged from the updated mining study in March 2020.

The project has ore reserves of 29.5-million tonnes grading 2.9% total rare-earth oxides, 13% phosphorous pentoxide and neodymium/praseodymium enrichment of 26.4%.

The updated feasibility study has reported a minor increase in the concentrate processing capacity of the process plant – from 330 000 t/y to 340 000 t/y. The definitive feasibility study was based on 300 000 t/y.

The beneficiation capacity has increased from one-million tonnes a year to 1.5-million tonnes later in the life-of-mine to accommodate lower run-of-mine head grades.

Minor changes to the hydrometallurgical recovery of rare earths and phosphorous pentoxide, resulting from the changes to the processing plant design, have also been reported.

The project is expected to produce 4 440 t/y of neodymium/praseodymium oxide over its 38-year mine life. Production of middle and heavy rare-earth oxides is estimated at 474 t/y and phosphoric acid at 144 393 t/y.

Potential Job Creation
The project will create 650 jobs at the peak of construction and new high-value export opportunities.   

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at an 8% discount rate, of A$1.4-billion and an internal rate of return of 18.1%.

Capital Expenditure
A$1.06-billion.

Planned Start/End Date
First ore processing is expected in October 2024, with first ore production expected towards the end of 2024. These dates are contingent on securing funding for the activities required.

Latest Developments
Arafura Resources has announced plans to raise A$41.5-million to progress the development of its Nolans project.

The company has received firm commitments from institutional and professional investors, and will issue 156.7-million shares at 26.5c each. The placement price represents a discount of 17.2% to Arafura’s last closing price.

The company will also issue one free attaching option for every two new shares subscribed for, with 78.4-million options to be issued, at an exercise price of 34c each and an expiry date of 18 months from issue.

Arafura has said that the placement is strongly supported by new and existing investors from around the world and reflects significant interest in the company’s tier 1 asset and vertically integrated corporate strategy, as well as the company’s potential to deliver a secure and sustainable supply of potential neodymium/praseodymium oxide into the global market for electric vehicles and renewables use.

Funds raised in the placement will be used to accelerate the development of the Nolans project through the completion of front-end engineering and the start of detailed design, and the start of tender activities for the main construction contracts.

Funds raised will also be used for general working capital purposes, including ongoing marketing and sales negotiations in the US, Asia and Europe and financing activities.

Key Contracts, Suppliers and Consultants
KBR, Wave International and Arafura’s geological, metallurgical and project personnel (updated definitive feasibility study); Mining Plus (mine planning, design and scheduling, along with mining cost estimation); Simulus (process simulation); and Infinity Corporate Finance (financial modelling).

Contact Details for Project Information
Arafura Resources, tel +61 8 6210 7666 or email arafura@arultd.com.