Arafura Rare Earths has secured a binding offtake agreement with Traxys Europe SA for the sale of neodymium-praseodymium (NdPr) oxide, two highly sought-after magnet rare earths.
Spanning over five years, the agreement will see Arafura supply a minimum of 100 tonnes per annum (tpa) of NdPr oxide from its Nolans project in the Northern Territory, with the option to increase volumes up to 300tpa at the company’s discretion.
“This agreement with Traxys moves us closer to achieving our offtake target of 80 per cent,” Arafura’s managing director Darryl Cuzzubbo said.
“With only 34 per cent of the product from Nolans remaining to be marketed, our ongoing negotiations mean we are well-positioned to reach this target.
“This arrangement complements our global supply chain diversification strategy and highlights the desirability of securing product from a Tier 1 jurisdiction like Australia and a project like Nolans with globally recognised ESG (environmental, social and governance) credentials.”
Traxys Europe SA is a commodity trader and merchant in metals and natural metals. The company will market NdPr from Nolans to help diversify the global supply chain for rare earths.
Strategic alignment with Traxys is set to be critical in providing flexibility to Arafura’s long-term marketing strategy.
The agreement is subject to conditions precedent, including the completion of Nolans’ construction and development, commencement of commercial production and ramp-up, with these conditions expected to be met by December 31 2028.
The deal contributes up to eight per cent of Arafura’s binding offtake target of 4440tpa of NdPr oxide.
The company has already secured agreements with Hyundai, Kia and Siemens Gamesa, covering 66 per cent of this target, while negotiations continue with other potential buyers.
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