28/04/2022 - 15:35

$US510m debt raise for rare earths

28/04/2022 - 15:35

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Arafura Resources has selected NAB and Societe Generale to lead a $US510 million debt raise for its Nolans rare earth project.

$US510m debt raise for rare earths
Rare earths are used in magnets, including for electric vehicles.

Arafura Resources has selected NAB and Societe Generale to lead a $US510 million debt raise for its Nolans rare earth project.

The $1 billion mine and processing plant is planned for the Northern Territory.

It will produce Neodymium and Praseodymium, which are used in high power magnets.

About a third of the $US 510 million will be contributed by Societe and NAB.

Arafura has already received a pledge of $200 million from Export Finance Australia and $100 million from the Northern Australia Infrastructure Facility.

A further $30 million was chipped in by the federal government through its Modern Manufacturing Initiative.

“The appointment of the (lead managers) represents an important milestone in the Company’s progress towards a final investment decision this year," managing director Gavin Lockyer said. 

“The (banks) have significant international and domestic expertise in natural resources project financing and our ability to attract them reflects the quality of the underlying Nolans Project.”

There are a series of rare earths projects in the pipeline in Australia.

Iluka Resources gave the green light to its Eneabba Refinery after the government promised a loan of $1.25 billion.

Lynas Rare Earths is developing a refinery in Kalgoorlie.

Rare earths are on the government’s list of critical minerals, along with helium, silicon, cobalt, and others.

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