Arafura Resources has signed a memorandum of understanding (MoU) with JingCi Material Science for the supply of Neodymium-Praseodymium (NdPr) oxide from its 100% owned Nolans Project in the Northern Territory.
Image: Arafura Resources signs offtake MoU with JingCi for Nolans project. Photo courtesy of PinkBlue/FreeDigitalPhotos.net.
JingCi is a Tier 1 Chinese manufacturer of Neodymium Iron Boron (NdFeB) permanent magnets, producing approximately 6,500 tonnes per annum and operating under Hitachi Metals’ worldwide patents. Approximately 85% of JingCi’s sales are outside of China, primarily to globally recognised automotive, wind energy, consumer electronics and industrial motor companies, and to original equipment manufacturers (OEMs) in the supply chain.
The non-binding MoU envisages the long-term supply to JingCi of up to 900 tonnes per annum of NdPr oxide, a quarter of Nolans forecast annual output of 3,600 tonnes1 , and provides a framework for negotiating a final offtake agreement.
The MoU also contains provisions whereby JingCi may assist Arafura in project financing, potentially through the introduction of OEMs to the process.
Arafura managing director, Gavin Lockyer, said, “We are delighted to have signed the MoU with JingCi and look forward to working with them to negotiate a final offtake agreement. This is an important step in the Company’s efforts to arrange financing for the Nolans Project and is the result of a lot of hard work by our team.”
The Company also advises it is negotiating offtake MoUs for the balance of its NdPr oxide offering, as well as for other rare earth products and phosphoric acid, and will inform the market on progress as they advance to completion.
Source: Company Press Release