- Australa’s first fully integrated ore-to-oxide rare earths operation.
- Export Finance Australia issues non-binding letter of support.
- FID follows recent binding offtake announcements.
- In discussions for Hatch as EPCM contractor.
Arafura Rare Earths (ASX:ARU) is selling up more than +6% in early Thursday trades after its board gave the long-awaited green light for the Nolans Rare Earths project in Australia’s Northern Territory to proceed as planned.
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Chair, Mark Southey, said Nolans has the potential to be among the most consequential contributions to Australian industrial productivity in the Northern Territory’s modern history.
He told shareholders the positive final investment decision comes on the back of a successful offtake signing campaign and strong support from the Australian government.
“The board’s decision today marks the delivery of a long-awaited milestone for Arafura and its stakeholders. It is the culmination of a deliberate and patient strategy. We have always believed that the right partners would define the quality and durability of the Nolans supply chain,” Mr Southey said today.
“Together with our customers, partners, and financiers across Europe, Korea, Canada, the U.S., and Australia, we are now ready to deliver our transformational project.”
The company is ramping up activities at the project, with CEO and MD Darryl Cuzzubbo highlighting a number of key recent announcements. This includes execution of a Traxys offtake binding term sheet and execution of binding cornerstone subscription agreements with Export Finance Australia, the National Reconstruction Fund Corporation and the German Raw Materials Fund.
“The achievement of FID reflects years of disciplined execution and partnership building. The offtake relationships we have established with Hyundai, Kia, Siemens Gamesa, Traxys and the various types of economic support provided by the Australian government are not transactional arrangements,” he said.
And, he added: “They reflect a shared recognition that the diversification of global rare earth supply chains is an imperative, not merely an opportunity.
“The decision to proceed… follows key recent developments under the comprehensive, multi-year financing and offtake strategy, which has drawn binding commitments from sovereign-backed institutions across four nations and resulted in securing binding offtake with leading manufacturers across the globe.
“The Australian government has taken a decisive and proactive approach, developing an economic toolkit that supports the rare earths sector in the near term that will deliver independent and functional markets into the future.”
The company is now targeting commencement of construction from September CY26 and has initiated early engagement with global multidisciplinary management, engineering and development consultancy Hatch as engineering, procurement and construction management (EPCM) contractor.
ARU is up +6.78%, to 31.5¢. Mkt cap $1.380B.
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