Tamboran stakes claim to supply Beetaloo gas to Arafura Rare Earths’ project near Alice Springs

Northern Territory gas explorer Tamboran has signed a milestone agreement that could see it supplying gas to a major project in Central Australia. Read where.

Aerial view Arafura Rare Earths Nolan rare earth project 135km from Alice Springs

Northern Territory gas explorer Tamboran Resources has signed a milestone agreement that could see it supplying gas to the $1.5 billion Arafura Rare Earths Limited Nolans project in Central Australia.

Tamboran and Arafura have entered into a non-binding Letter of Intent (LOI) to progress discussions for gas supply from Tamboran’s Beetaloo Basin assets to Arafura’s Nolans rare earth project 135km north of Alice Springs.

Tamboran Resources Corporation managing director and CEO, Joel Riddle said Tamboran’s Letter of Intent with Arafura further demonstrates the company’s commitment to support jobs and industry within the Northern Territory.

Tamboran also has agreements with Northern Territory pipeline operator APA Group Pty Ltd for it to build a 35km pipeline from its Shenandoah South well sites, connecting the gas development area to the Amadeus Gas Pipeline.

Tamboran Resources CEO and Managing Director Joel Riddle.

Arafura’s proposed downstream rare earth processing facility is situated adjacent to the existing Amadeus Gas Pipeline (AGP).

The Northern Territory Government says development of the Beetaloo Sub-basin is critical to economic development in the Northern Territory.

Under Tamboran’s latest agreement, Arafura intends to support the development of Tamboran’s Beetaloo Basin acreage by purchasing 18 – 25 terajoules per day of gas for up to 10 years.

Arafura’s Nolans Rare Earth Project is 650 kilometres south of Tamboran’s Beetaloo Basin acreage.

The two parties will work in good faith to negotiate a full form term sheet and definitive form documentation.

Mr Riddle, said Tamboran is looking forward to building a long-term relationship with Arafura and supplying natural gas to a project of national significance.

The Federal Government has invested $1.24 billion in the Arafura Rare Earth project to enable the company to press ahead with raising the funding required to commence development of the new mine and processing facility at Nolans.

NOLANS PROJECT. Arafura Resources Ltd. Picture - Supplied

“The Nolans Rare Earth Project has received credit approved terms for more than US$1 billion in debt finance from nine export credit agencies and commercial lenders,” Mr Riddle said.

“The NT’s abundance of natural gas can provide a real solution to Australia’s east coast gas supply security – and in turn will accelerate a multi-billion dollar growth in the Northern Territory economy.”

Arafura’s Nolan facility will create 600 jobs during the construction phase with 350 ongoing jobs once mining and refining operations are underway.

It will encompass an open pit mine, advanced rare earth processing facility, sulfuric acid plant, and related infrastructure.

Darryl Cuzzubbo Chief Executive Officer and Director of Arafura Resources a. Picture: Pema Tamang Pakhrin

With an initial mine life of 38 years, the Nolans Project is set to produce around 4 per cent of the world’s demand for neodymium and praseodymium (NdPr) from 2032.

Rare earth elements with their unique magnetic, luminescent, and conductive properties, are crucial in a wide range of modern technologies, including defence equipment, mobile phones, wind turbines and electric vehicles.

Arafura Rare Earths chief executive Darryl Cuzzubbo says the company is trying to build a national capacity under repayable loans that go back to the government and in the meantime act in the national interest, but also create jobs and create further capacity.

Demand for processed rare earth minerals is expected to double by 2030, with the current market currently dominated by China.

Originally published as Tamboran stakes claim to supply Beetaloo gas to Arafura Rare Earths’ project near Alice Springs