Doch noch Leben in der Bude?
Arafura Resources teams with China’s Shenghe Resources to develop NT rare earths project
Tuesday, September 10, 2013 by Proactive Investors
Arafura Resources and Shenghe Resources Holdings will jointly develop the Nolans Rare Earths Project in the Northern Territory
Arafura Resources and Shenghe Resources Holdings will jointly develop the Nolans Rare Earths Project in the Northern Territory
Arafura Resources (ASX: ARU) has executed a key Memorandum of Understanding with Chinese rare earths producer Shenghe Resources Holding (SHA: 600392) to jointly develop the Nolans Rare Earths Project in the Northern Territory.
Securing Shanghai Stock Exchange-listed Shenghe, a 8.25 billion yuan (A$1.46 billion) industry leader in rare earths production and technology development, as a partner is a coup for Arafura, giving it a leg up towards financing and commercialising the project.
The deal with Shenghe will also provide momentum towards reducing capital and operating costs at the project.
Shenghe operates a rare earths processing plant in Leshan City and markets specialty products to international and Chinese based customers.
Under the agreement, the two companies will work together to achieve the following objectives:
- Shenghe to conduct scheduled reviews of the Nolans Project Definitive Feasibility Study which is being prepared by Arafura;
- Upon successful completion of the definitive feasibility by Arafura, Shenghe will be provided with the opportunity to co‐fund the development of the Nolans Project;
- Arafura and Shenghe to examine opportunities for the sale and distribution of rare earth products to Shenghe’s existing customers;
- Arafura and Shenghe to continue to look for opportunities and initiatives to add to and build the strategic partnership to develop an international rare earths business; and
- Negotiate a Framework Agreement to formalise the arrangements for the establishment of a long term strategic partnership.
Nolans has an Ore Reserve of 24 million tonnes at 2.8% rare earth oxides, 12% P2O5 and 0.02% uranium, enough to support a 22 year mine life.