Arafura inks binding five-year NdPr offtake agreement
ASX-listed Arafura Rare Earths has secured a binding five-year offtake agreement with a leading global raw materials trading company to supply 850 t/y of neodymium and praseodymium (NdPr) oxide.
This compares to a supply agreement of 500 t/y having been envisioned in the companies' prior binding term sheet signed in May this year.
The pricing of the contract will be linked to an independent and transparent global seaborne index, such as the recently established Benchmark Minerals Intelligence indices or S&P's Global Platts North America pricing index.
Notably, Arafura says the trader has been tapped under the US government's Project Vault initiative to help build resilient supply chains and secure critical mineral reserves for American manufacturing.
The offtake agreement may be extended twice by two years if mutually agreed by both parties.
Arafura remains in discussions with more potential offtakers while developing the Nolans project in Australia's Northern Territory. The project is being designed to produce 4 440 t/y of NdPr oxide alongside heavy rare earths and phosphoric acid byproducts.
First production from the project is targeted in early-to-mid 2029.
