Arafura finds project management partner for Nolans

Arafura Resources has appointed engineering and construction group KBR to manage development of its Nolans rare earths project in the Northern Territory.

KBR will manage all aspects of the project under the deal announced in the ASX today, with the contract to include engineering design services for non-process infrastructure at Nolans, which is around 130 kilometres north of Alice Springs.

Arafura said KBR would also partner with resource development consultancy group Wave International as a sub-consultant.

Managing director Gavin Lockyer said the appointment of KBR was a major milestone for the Nolans project.

“KBR brings a proven track record, systems and global experience to the project which will enhance our existing capabilities,” Mr Lockyer said.

“Through their partnership with Wave, which has assisted the Arafura team with the definitive feasibility study and execution readiness activities to date, there will be a continuity of knowledge and momentum, moving into the project delivery activities.”

The Nolans project is considered to hold one of the largest neodymium and praseodymium rare earths deposits in the world, with its ore reserves having the potential to support mining and processing operations for 23 years.

Arafura is targeting a production capacity of 300,000 tonnes of rare earths concentrate each year the mine is operating.

In December, Arafura announced it had entered a strategic partnership with USA Rare Earth, with concentrate from the Nolans mine to be processed at the US company’s Colorado plant.

The companies signed a letter of intent and plan to execute a definitive agreement in the coming months.