Arafura Resources Ltd (ASX:ARU) continues to progress towards finalising offtake agreements for rare earths from its 100%-owned Nolans Neodymium-Praseodymium (NdPr) Project in the Northern Territory.
Notably, the release of the definitive feasibility study (DFS) for the project in February 2019 has been a catalyst for engagement with potential offtake and financing partners.
Negotiations during February and March centred on product offtake have been a key focus for the company’s executive team in support of efforts to secure finance for the project.
Arafura is targeting customers that includes those looking to reduce their Chinese NdPr supply risk given they are such a dominant supplier in the global market.
READ: Arafura Resources Nolans NdPr project assessed by NAIF ahead of investment decision
Arafura noted that recent engagement with participants at various points in the NdPr supply chain in Japan, South Korea, China and Europe has been very encouraging.
Talks have been underpinned by rising demand-side pressure for NdFeB magnets in applications that will enable the widespread adoption of e-mobility, clean energy and factory automation.
The company is also making solid progress in marketing its other rare earth products, and its phosphoric acid product to fertiliser companies in India.
The table and graphic below summarise Arafura’s product offtake strategy and the status of its negotiations.
Proactive caught up with Arafura in late February 2019 ahead of its planned meeting with the U.S. manufacturing association in D.C. and potential off-take partners.