Arafura Resources Ltd (ASX:ARU) has signed a Joint Statement of Cooperation with Korean government agency Korea Mine Rehabilitation and Mineral Resources Corporation (KOMIR) to support the development of Arafura’s Nolans Project and assist in the export of product from Nolans to the Republic of Korea.
The agreement focuses on expanding cooperation in several areas, including information sharing on the development of the Nolans project for Korean investors, the import of rare earth products into Korea and the use of strategic stockpiling.
Rare earth magnets
Nolans will produce neodymium-praseodymium (NdPr) oxide – a product integral to the production of rare earth magnets used in emerging industries such as the electric vehicle market.
Cooperation between Arafura and KOMIR recognises the strategic importance of a secure supply of critical minerals, including NdPr, to the Korean market.
Arafura chairman Mark Southey welcomed the opportunity to strengthen its relationships in Korea.
“The Arafura Board of Directors and our management team welcome this recognition of our relationship with Korea and the opportunities it will facilitate to deliver supply of NdPr from the Nolans Project to the Korean market,” he said.
Secure supply of critical product
“This is another milestone that indicates the global significance of Nolans, and international interest in the project’s capacity to provide a reliable, secure supply of what is a critical product,” Southey said.
Managing director Gavin Lockyer added that the company’s relationship with KOMIR reaffirmed the importance of Nolans to prospective customers and Australia’s key trading partners.
“Nolans has the capacity to meet demand for rare earths in a number of major international markets,” he said.
“The coming 12 months is a particularly significant period as we continue to work toward a final investment decision for Nolans in the second half of 2022, while simultaneously progressing advanced negotiations on senior debt facilities and offtake agreements.”