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 produces commercial quality Rare Earth Oxides from Nolans
Perth-based Arafura Resources (ASX: ARU) has successfully produced a commercial quality separated Rare Earth Oxides.
Rare Earth Oxide separation is one of the key technology work streams in progress for the Nolans Project Feasibility Study.
Separated middle rare earth oxides (MREE1) and heavy rare earth oxides (HREE2) have now been produced at the laboratories of the Australian Nuclear Science and Technology Organisation (ANSTO) in Sydney.
Following initial laboratory work a fully integrated mini-plant representing the MREE and HREE production circuit was successfully operated continuously for 62 hours, resulting in commercial quality MREE and HREE products.
Laboratory-scale separation of individual light rare earth oxide (LREE3) fractions (La, Ce and Nd/Pr) is now in progress.
“The production of separated Rare Earth Oxides presents Arafura with the opportunity to extract maximum value from the Nolans Project,” Arafura’s Managing Director & CEO, Dr Steve Ward, said.
“This is a very substantial milestone on our Company’s path to becoming the pre-eminent supplier of Rare Earth Oxides to the world from operations wholly within Australia.”
A pilot plant to produce commercial quality samples of all separated REO products – La, Ce, Nd/Pr, MREE and HREE – for customer assessment is planned to follow successful completion of LREE test work.
Given recent increases in the prices of Rare Earths, the value of 1k of Nolans Rare Earths Mix would be approximately US$43, a 255% increase since December 2009. At these prices, annual sales revenue from rare earths alone at Nolans would be US$860 million.
Prices have moved upwards significantly since China announced reductions in Rare Earth export quotas for the second half of 2010. Prices of all rare earths have increased. In particular, the prices of the lighter Rare Earths, Lanthanum and Cerium, have increased markedly as exports of these from China have been reduced.
