Arafura Resources Ltd (ASX:ARU) has received a tax refund of $2.1 million for eligible expenditure at its 100% owned Nolans Neodymium‐Praseodymium Project in the Northern Territory.
The company plans to use these funds to support the completion of the Nolans definitive feasibility study (DFS) currently in progress.
Notably, Arafura’s total cash receipts from these tax incentives now amount to $39.1 million.
Tax rebate highlights the project’s importance
The fact that expenditure incurred in developing the Nolans Project is eligible for the federal government’s tax incentive program is a positive for the project.
This together with the ongoing support of the Australian and Northern Territory governments highlights the strategic and advanced nature of the project and its potential economic benefit to regional Australia.
Notably, in 2016, the project gained major project status from the Commonwealth Government.
READ: Arafura Resources signs MoU for supply of NdPr oxide to major Chinese manufacturer
Earlier this week, Arafura signed a memorandum of understanding (MoU) with JingCi Material Science Co Ltd for the supply of NdPr oxide from the Nolans Project.
The non-binding MoU envisages a long-term supply to JingCi of up to 900 tonnes per annum of NdPr oxide, representing a quarter of Nolans’ forecast annual output of 3,600 tonnes.