The Nolans Rare Earths mix average valuation is currently standing at US$70.12/kg, based on China FOB prices, proving a major boost for the Arafura Resources (ASX: ARU) Nolan's Project as the price represents a 412% increase over the past year.
Steve Ward, managing director and CEO, said "The era of low priced rare earths is behind us as their intrinsic value in end applications is better understood, their strategic importance is increasingly recognised and supplies remain tight well into the future."
As recently as October, Arafura published an update on Nolans which used US$51/kg as a basis for economic modelling, which the company said provided very positive results.
Ward added, "Already, prices have risen well above this upside case.
"This is very positive news for the company as we move quickly to first production in 2013."
The Nolans Project comprises operations at two sites within Australia, the Nolans Bore Mine in the Northern Territory and the Whyalla Rare Earths Complex in South Australia.
Annual production of 20,000 tonnes of rare earth oxides from the Whyalla Rare Earths Complex, equivalent to about 10% of the world’s supply, is on schedule to commence in 2013.