Arafura Signs Offtake Agreement for Rare Earths with Indian Group
Arafura Rare Earths has finalized a binding offtake agreement to supply 500 mt per year of rare earth oxides from its Nolans project. This agreement, conditional on Indian government support, marks a significant step in advancing the Nolans Rare Earths Project.
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Arafura Rare Earths will supply 500 metric tons annually of praseodymium-neodymium, dysprosium, and terbium oxides to an Indian industrial group under a five-year binding offtake agreement with a two-year extension option. This deal is contingent upon the buyer being designated as a beneficiary of India's $815 million rare earth permanent magnet initiative.
The Nolans project aims to produce 4,400 mt/year of praseodymium-neodymium oxide and 470 mt/year of mixed medium-heavy rare earth oxides, with a 38-year mine life. Arafura has secured 4,070 mt/year of offtake capacity, equating to 83.6% of production, with the remaining 370 mt/year intended for spot market sales.
The project is integral to meeting rising global demand for critical minerals, supporting diverse supply chains in electric vehicles and renewable energy. Completion of financing is expected to facilitate full-scale project execution.
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