A Canadian export credit agency has backed Arafura Rare Earths’ Nolans project, potentially funding up to $440 million towards the Northern Territory development.
A Canadian export credit agency has backed Arafura Rare Earths’ Nolans project, potentially funding up to $A440 million towards the Northern Territory development.
Arafura Rare Earths today advised the market that Export Development Canada (EDC) has sent a letter of interest for potential financing of up to US$300 million, roughly equivalent to $A440.9 million.
The Perth-based rare earths miner said the indication of support was linked to a strategic arrangement between EDC and General Electric Company.
In July last year, Arafura and General Electric Company (GE) signed a memorandum of understanding to supply Neodymium and praseodymium (NdPr) from Nolans for the latter’s offshore wind turbines.
A project update in November shows the upfront capital cost of the Nolans project in the Northern Territory had increased to $1.59 billion, up from $1.05 billion in the feasibility study Arafura released in May 2021.
Arafura managing director Gavin Lockyer said the company was delighted to receive indicative support from EDC for the project.
“This is further demonstration of the strategic significance that international governments place on the project and its capacity to provide a sustainable supply of critical NdPr to meet the needs of major businesses in key global jurisdictions,” he said.
“We are proud to include GE among the tier-one OEMs associated with offtake from Nolans, and welcome GE’s provision of its Aero power generation technology for the project.”
Arafura said the indicative support from EDC aligned with its debt-led funding strategy for the Nolans project.
“It follows the company’s receipt of in-principle letters of support from Germany’s Euler Hermes for up to $US600 million in untied loan guarantees in relation to offtake by German companies … and up to a combined $A350 million from Export Finance and the Northern Australia Infrastructure Facility,” it said on the ASX.
In April, Arafura signed with global wind turbine manufacturer Siemens Gamesa to supply at least 200 tonnes of NdPr a year for a period of five years.
Arafura shares were trading 1.49 per cent higher at 34 cents a share as of 2.25pm AEST today.
