Arafura Resources (ASX: ARU) is an emerging rare earths producer. Arafura is currently developing its Nolans rare earths-phosphate-uranium project in Australia’s Northern Territory. The project is underpinned by a 30 million tonne resource that can sustain a 20-year mine life.
Arafura has expanded the scope of a Bankable Feasibility Study for the Nolans Project and extended the expected completion date of the Nolans Project Bankable Feasibility Study by nine to twelve months to simplify the Nolans Project flow sheet to focus predominately on production of rare earth products.
Arafura Resources completes key technology work program for Nolans rare earths project
Arafura Resources (ASX: ARU) has completed the hydrochloric acid regeneration program at its Nolans rare earths-phosphate-uranium project in the Northern Territory.
The program is a key part of its wider, previously reported technology program at Nolans, where Arafura remains on track to deliver the first production of an annualised 20,000 tonnes of rare earth oxides in 2013.
The process involves taking calcium chloride residues from the phosphate circuit and re-acting them with sulphuric acid to produce re-useable hydrochloric acid, a key raw material in Arafura’s pre-leach circuit, thus reducing Arafura’s dependence on external Hydrochloric acid sources.
The process also produces calcium sulphate (gypsum), a potential saleable product into various end applications.
Dr Steve Ward, Arafura’s managing director and CEO, said “The successful completion of this demonstration program highlights Arafura’s commitment to the Nolans Project and its efforts to de-risk key technological aspects.
"This is important for potential financiers and provides valuable technical and operating experience for Arafura. The successful completion of this work is another major step forward for us.”
The company now plans to incorporate the logistical and economic benefits of Hydrochloric acid regeneration and gypsum production into the Bankable Feasibility Study (BFS) for Nolans.
Arafura has begun engineering design for the overall flowsheet, and said that customers are being further engaged for evaluation of the gypsum product for potential offtake.
AMMTEC successfully operated the demonstration plant on a continuous basis at its facility in Perth, Western Australia, with involvement from experts from the University of Montreal, Canada, and Arafura’s Technology team.
The demonstration facility has successfully achieved:
- Production of 32% Hydrochloric acid from a simulated recycle stream similar to the Phosphate circuit waste liquors, with a recycle efficiency of at least 97.5%;
- Production of crystalline gypsum with filtration characteristics suitable for processing via commercially available filters;
- Production of Dihydrate gypsum. Feedback from one major gypsum user indicates that this material has potential for future commercial use;
- Provision of detailed design and operating data for the Bankable Feasibility Study.
The company is advancing towards delivering a BFS for Nolans, and remains well funded after the A$90 million capital raising towards the end of 2010.
On March 21 Arafura's Nolans rare earths mix leaped above $US120 a kilogram, more than three times the 2010 average of US$34 a kilogram, indicating the continuing strong global demand for rare earths.
