Arafura Rare Earths closer to securing debt for giant project

Arafura Rare Earths has received conditional approval for debt financing of up to US$150 million from The Export-Import Bank of Korea (KEXIM), bringing the financing of the giant Nolans Project closer to closure.

The financing comprises a direct loan facility of up to US$75.1million and a loan guarantee up to US$74.9 million, with the company closing in on its targeted US$775 million senior debt funding required for the critical minerals mine and refinery.

The Nolans rare earths project near Alice Springs in the Northern Territory will supply wind turbine manufacturer Siemens Gamesa, Kia and Hyundai with Neodymium and praseodymium (NdPr) oxide or NdPr metals.

Hailed as one of the world’s largest new rare earths projects, Nolans could supply 10 percent of the world’s demand for the metals used in rare earths magnets.

The project is backed by Australian government conditional debt finance of US$533 million.

Arafura Managing Director Darryl Cuzzubbo said: “Hyundai and Kia are Arafura’s cornerstone customers and our strategic alliance with Korea has been fortified by KEXIM’s US$150 million in financing support for the Nolans Project.

“Together, KEXIM and Arafura are embarking on the development of a diversified global NdPr supply chain to achieve a lower carbon future.

“We remain steadfast on achieving a final investment decision this year.”

Arafura has entered into cornerstone binding offtake agreements with Hyundai Motor Company and Kia Corporation for the supply of up to 1,500 tonnes per annum of NdPr oxide when the Nolans Project achieves nameplate production capacity.

Further reading:
Canberra loan backs Nolans rare earths project

Picture: Darryl Cuzzubbo, Managing Director and Chief Executive Officer, Arafura Rare Earths