- Arafura Resources (ARU) signs a non-binding memorandum of understanding with South Korean automotive manufacturer Hyundai Motor Company
- The MoU allows the parties to negotiate a binding offtake agreement to supply Neodymium-Praseodymium oxide to Hyundai from the Nolans project in the NT
- The potential deal has a seven-year term and would commence in 2025 on a cost, insurance, freight (CIF) basis
- Arafura and Hyundai are aiming to land on a binding deal by September 2022
- Shares in Arafura Resources jumped 10 per cent this morning to $0.38 as of 10:24 am AEST
Arafura Resources (ARU) has signed a memorandum of understanding with South Korean automotive manufacturer Hyundai Motor Company.
The MoU will allow the companies to negotiate a binding offtake agreement for the supply of between 1000-1500 tonnes per annum of Neodymium-Praseodymium oxide to Hyundai from the Nolans project.
Nolans is a rare earth ore to oxide mine and processing facility in the Northern Territory.
The potential deal has a seven-year term and would commence in 2025 on a cost, insurance, freight (CIF) basis.
Arafura and Hyundai are aiming to land on a binding deal by September 2022.
Arafura Managing Director Gavin Lockyer said the MoU is a fantastic outcome and validates the Tier-one credentials of Nolan as “one of the world’s premier next generation Neodymium-Praseodymium ore to oxide projects.”
“The Nolans project is strategically significant for Tier-one customers as it offers scale and supply chain diversification and security that will underpin their EV technologies,” Mr Lockyer said.
Shares in Arafura Resources jumped 10 per cent this morning to $0.38 as of 10:24 am AEST.