Arafura Rare Earths makes major change at the top

If it ever goes ahead, Arafura Rare Earths’ Nolans project will have a new chief executive. Who has been chosen to lead the project.

Mr Park Chan Young (Vice President, Electric Vehicle Parts Purchasing Sub-Division) and Mr Gavin Lockyer (Managing Director) sign NdPr Offtake Agreement at signing ceremony in South Korea.

Slow-burn critical minerals project Arafura Rare Earths has announced a change at the top, with longtime managing director and chief executive Gavin Lockyer leaving the role.

Arafura announced on the stock exchange Monday morning it had replaced Mr Lockyer with Arafura board member Darryl Cuzzubbo.

The $1.6bn Arafura Rare Earths Nolans project has been on the NT’s development drawing board for almost two decades, with the project’s final investment decision held back multiple times until market conditions were favourable.

New chief executive at Arafura Rare Earths, Darryl Cuzzubbo.

It was hoped final investment decision would be taken in the final quarter of 2023 but Mr Lockyer announced in December it was hoped work would begin in the second half of 2024.

Funded by a 50-50 mix of debt and equity, Arafura Rare Earths is also waiting for the federal government to sign off on a $350m joint contribution to the project from the Northern Australia Infrastructure Facility and Export Finance Australia.

Mr Lockyer oversaw negotiations with South Korean vehicle manufacturer Hyundai and Kia for the supply of up to 1500 tonnes a year of NDPRoxide, which locked up about half the Nolan’s resource.

He also sourced $300m from Export Development Canada and a $600m loan guarantee from German Credit agency Euler Hermes Aktiengesellschaft.

Gina Rinehart’s Hancock Prospecting took a 10 per cent shareholding in Arafura Rare Earths last year.

The company’s statement to the stock exchange said Mr Cuzzubbo’s appointment is the result of an extended four-month executive search led by Korn Ferry.

Darryl Cuzzubbo.

‘The search was assisted by Mr Lockyer and represented the Board’s focus on leadership transition by identifying the individual who can best lead Arafura through its next phase of development, including construction and delivery of the Nolans Project and growth into a globally significant rare earths producer.

Mr Cuzzubbo has previously spent 24 years with BHP and has more than 30 years’ experience in commodities.

Arafura chairman Mark Southey said the change reflects the company’s commitment to the Nolans project.

“This transition reflects the Board’s absolute focus on delivering and commissioning the Nolans Project, as the company’s efforts to secure key off-take agreements and debt financing head towards a conclusion,” Mr Southey said.

“On behalf of the Board I express sincere thanks to Gavin for his many and varied contributions to Arafura and the development of the Nolans Project over many years

“Gavin was instrumental in driving the Company forward and the many important steps taken, and agreements secured, by his team to commercially position us for the delivery phase of the Nolans Project.”

Mr Cuzzubbo will be based at Arafura’s Perth head office.