Arafura Signs Rare Earths MOU with Chinese Magnet Maker

Arafura Signs Rare Earths MOU with Chinese Magnet Maker

Arafura Resources has signed a memorandum of understanding that would see a quarter of its neodymium-praseodymium oxide output go to a major Chinese magnet manufacturer.

Australian rare earths company Arafura Resources (ASX:ARU) has signed a memorandum of understanding (MOU) with Chinese magnet producer JingCi Material Science that would see a quarter of the company’s projected neodymium-praseodymium output spoken for.

In Arafura’s Monday (October 15) release, it says that the agreement would see 900 tonnes of neodymium-praseodymium oxide provided to the Chinese company annually from the Nolans rare earths project in the Northern Territory.

While the agreement is non-binding, Arafura said that it provides a framework for negotiating a final offtake agreement and opens the door to financing agreements.

Arafura’s managing director, Gavin Lockyer, said, “we are delighted to have signed the MoU with JingCi and look forward to working with them to negotiate a final off-take agreement.”

He added, “[t]his is an important step in the company’s efforts to arrange financing for [Nolans].”

The Nolans project has an envisaged annual output of 3,600 tonnes of neodymium-praseodymium oxide — a rare earth component vital in the manufacturing of magnets and magnet alloys.

The memorandum allows JingCi, which manufactures neodymium iron boron permanent magnets, to assist with financing for the Nolans project, “potentially through the introduction of original equipment manufacturers (OEM) to the process.”

According to Arafura, JingCi’s customers are primarily outside of China, and include automotive, wind energy, consumer electronics and industrial motor companies.

The company is currently negotiating other offtake agreements for the remainder of the neodymium-praseodymium oxide from Nolans, as well as its other rare earths products and phosphoric acid.

The company has been progressing rapidly through 2018 with its rare earths project, which received its final environmental approvals from the Australian government in May.

The AU$900-million project was given the green light with a few caveats around environmental protection, with the government making mention of environmental impact, biodiversity, groundwater protection and radiation considerations in the region.

Nolans is 135 kilometers north of the Central Australian town of Alice Springs, the only major service center and settlement in the red center of Australia.

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Scott Tibballs, hold no direct investment interest in any company mentioned in this article.

Hastings Technology Metals Ltd Measured and Indicated Mineral Resource Tonnes Up by 54%

Perth, Australia (ABN Newswire) – Australia’s next rare earths producer, Hastings Technology Metals Ltd (ASX:HAS) (FRA:5AM), is pleased to announce a material increase in Mineral Resource Estimate at its Yangibana Rare Earths Project (Yangibana) in Western Australia’s Gascoyne region.

Highlights

– Measured and Indicated Mineral Resource tonnes increased by 54% to 16.3Mt for Yangibana deposits drilled during 2020.

Keep reading... Show less

ASI certifies Rio Tinto’s ISAL smelter for responsible production

Rio Tinto’s ISAL smelter in Iceland has been certified by the Aluminium Stewardship Initiative (ASI) for meeting the highest internationally recognised standards for responsible aluminium production.

The certification continues Rio Tinto’s leadership of the industry on responsible aluminium production from mine to metal, and means customers can be assured aluminium produced at ISAL meets independent environmental, social and governance standards.

Keep reading... Show less

Rio Tinto updates details of tailings facilities

Rio Tinto today released updated information in relation to its global tailings facilities to align with the requirements of the Global Industry Standard for Tailings Management (GISTM) released in August 2020, an initiative co-convened by the International Council on Mining and Metals, United Nations Environment Programme and the Principles for Responsible Investment.

The latest disclosure at http://www.riotinto.com/tailings builds on previously disclosed information on each of Rio Tinto’s global tailings facilities released in June 2019 and the publication of Rio Tinto’s Group Procedure and updated Standard for ‘Management of tailings and water storage facilities’ in February 2019. The changes to existing data are in line with guidance contained in GISTM including updating information previously disclosed.

Keep reading... Show less

Hastings Technology Metals Ltd Quarterly Activities Report

Perth, Australia (ABN Newswire) – Australia’s next rare earths producer, Hastings Technology Metals Ltd (ASX:HAS) (FRA:5AM) is pleased to report on exploration and development activities for the three-month period to 31st March 2021. Most of the activity focused on the Company’s Yangibana Rare Earths Project (“Yangibana”) in the Gascoyne region of Western Australia.

Highlights

– Hastings raised $100.7 million (before costs) through a two-tranche equity placement priced at $0.19 per share, with funds to be used to advance development of the Yangibana Rare Earths Project.

Keep reading... Show less

Argyle Diamond Mine Closure: What’s Next for the Sector in Australia?

Click here to read part one of this article, which covers the closure of the Argyle diamond mine.

When the mining equipment permanently shut down at Western Australia's Argyle mine in November 2020, the country's diamond sector entered a transitional period.

As the world's fourth largest diamond-producing asset shuttered, domestic output of the gems instantly declined by as much as 90 percent.

Keep reading... Show less

Top News

Related News