Arafura Rare Earths Limited has signed an offtake agreement with Siemens Gamesa Renewable Energy to supply Neodymium and Praseodymium (NdPr) rare earths from the company’s Nolans Project in Central Australia.
The offtake agreement is for the supply of NdPr from the project to Siemens Gamesa over a five-year term, which could be extended for a further two years by mutual agreement.
The contract volumes (per contract year) for NdPr metal are 200 tonnes per annum (tpa) commencing in 2026, increasing to 360tpa in year two and 400tpa in years three to five to align with ramp-up of the project, Arafura said.
The NdPr from Nolans will be used in the manufacture of permanent magnets used in offshore wind turbines assembled at Siemens Gamesa’s Cuxhaven production facility in Germany.
Arafura currently anticipates the first production of NdPr Oxide in 2025 with annual production expected to ramp-up to 4,440tpa in 2028. These dates are dependent on a number of factors including securing remaining offtake agreements, securing funding on appropriate terms to develop the Project, and successful construction, commissioning, and ramp-up of the Project, Arafura said.
The company added that the offtake agreement will support ongoing discussions with German ECA Euler Hermes, which recently provided Arafura with a non-binding letter of in-principle support for an untied loan guarantee of up to USD 600 million to support the Nolans Project.
This is the second offtake agreement to be signed, with approximately 53 per cent of the targeted 85 per cent annual production from Nolans secured under long-term sale arrangements now contracted.
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