Arafura has signed an agreement to supply rare earth products to Chinese permanent magnets manufacturer Baotou Tianhe Magnetics Technology.
Under the memorandum of understanding, Arafura will be supplying Baotou up to 900 tonnes per annum of Neodymium-Praseodymium (NdPr) oxide – used in industrial magnets – from its Nolans project in the NT, subject to a final off-take agreement.
Rare earths are a group of 17 chemical elements used in everything from high-tech consumer electronics to military equipment.
Australia contains only 2.8 per cent of the world’s rare earth reserves, but accounts for more than half of the new projects in the global pipeline.
The US and Australia are set to release a plan on Friday aimed at securing the supply of rare earth minerals, as the former looks to secure the supply of the mineral amidst a protracted trade war with China.
China is the world’s largest processor and producer of the minerals, accounting for more than 80 per cent of global processing capacity.
AAP
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