$1.1bn Nolans mine planned for the Territory has offer of a multi-million-dollar cash injection from the federal government

A $1.1bn mine planned for the Territory has had an offer of a multi-million-dollar cash injection from the Australian Government.

THE $1.1bn Nolans mine planned for the Territory near Alice Springs has had an offer of a multi-million-dollar cash injection from the federal government to help stimulate investor interest in its rare earths.

Arafura Resources (ARU), which wholly owns the Nolans Rare Earth Project 135km from Alice Springs, has a non-binding letter of support from Export Finance Australia (EFA) that proposes a funding package for the Nolans project.

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The federal export credit agency is offering to provide a debt facility with up to $200m in available funding that will run over 15 years.

Arafura Resources has Macquarie Capital (Australia) Limited engaged to help raise funds for the company’s flagship Nolans Bore project.

Macquarie will oversee the initial phase of a debt process targeted at global export credit agencies for funding.

Arafura’s managing director Gavin Lockyer said Arafura was delighted to be working with Macquarie and Export Finance Australia to secure a debt funding package. He said the EFA facility would act as a cornerstone investment to a broader banking debt facility being progressed with a mix of foreign export credit agencies and commercial banks.

“As a result of the COVID-19 pandemic, we have seen increased interest by governments globally to support the development of critical minerals, such as rare earths, and to diversify auditable and sustainable raw material supply chains,” Mr Lockyer said.

“The Nolans Project is a strategically important shovel-ready source of Neodymium Praseodymium (NdPr) oxide, which is in high demand for the growing electric vehicle market.

“We are the only Australian rare earths company that plans to mine and process rare earths ore through to highly refined separated oxides within Australia.”

Arafura has completed all environmental approvals and has Major Project Status with the Australian and Northern Territory governments.