Arafura Resources (ASX:ARU) has noted a further increase in Rare Earths prices in September.
These new prices have pushed the value of 1Kg of Nolans Rare Earth mix past the US$50 level to US$50.03.
This represents a stunning 313% increase since December 2009 and continues to the trend of historical highs.
Rare Earths prices have significantly increased following the announcement by China in July 2010 of reductions in Rare Earth export quotas for the second half of 2010.
Prices of all Rare Earths have increased. Most recently, the prices of the lighter Rare Earths, Lanthanum, Praseodymium and Neodymium, have increased markedly as demand has remained strong while exports of these from China have been reduced.
Dr Steve Ward Arafura’s managing director and CEO said the continuing trend of higher prices due to shortages outside of China underlines the importance of new supply sources and in particular the company's own Nolans Project.
The company has ticked off major milestones at Nolans toward first production in 2013.
At current Rare Earth prices annual sales revenue from Rare Earths alone would be US$1 billion for Arafura.