Tamboran Resources Corporation Ltd and a wholly-owned subsidiary of Arafura Rare Earths have inked a letter of intent (LOI) over gas resources from the Beetaloo Basin.
The non-binding agreement will progress discussions for potential gas supply from Tamboran’s Beetaloo Basin assets to Arafura’s Nolans Rare Earth Project in the Northern Territory.
Jobs in the NT
Tamboran managing director and CEO Joel Riddle said: “Tamboran’s LOI with Arafura demonstrates our company’s ongoing commitment to support jobs and industry within the Northern Territory.
“Arafura’s operations require reliable and affordable gas volumes to operate their rare earths project, which is of national strategic importance.
“The Nolans Rare Earth Project has received credit approved terms for more than US$1 billion in debt finance from nine export credit agencies and commercial lenders and A$200m investment commitment from Australia’s National Reconstruction Fund Corporation.”
Under the agreement, Arafura has indicated that it will support the development of Tamboran’s Beetaloo Basin acreage by purchasing 18 – 25 terajoules per day (TJ/d) (~18 – 26 MMcf/d) of gas for up to 10 years.
Proposed downstream facility
Arafura’s Nolans Rare Earth Project is 404 miles (650 kilometres) south of Tamboran’s Beetaloo Basin acreage.
Arafura’s proposed downstream rare earth processing facility is situated adjacent to the existing Amadeus Gas Pipeline (AGP).
The two parties will work in good faith to negotiate a full form term sheet and definitive form documentation.
“Tamboran looks forward to building a long-term relationship with Arafura and supplying natural gas to a project of national significance,” Riddle said.