Export Development Canada (EDC) has conditionally approved $300-million in debt financing for the Nolans rare earths project, near Alice Springs in the Northern Territory.
The funding package takes conditional approvals to 68% of the targeted $775-million of senior debt funding for Nolans, bringing Arafura closer to a final investment decision on the project.
The connection between Arafura and EDC was facilitated by renewable-energy group GE Vernova in recognition of the significance of the Nolans project and its role in diversifying the rare earth materials supply chain for offshore wind turbines.
EDC’s support for the project is linked to the nonbinding memorandum of understanding with GE Renewables and supply contracts from Canadian companies.
Arafura explains that the EDC facility will be conditional upon Arafura achieving an 80% binding offtake target.
“Debt financing from EDC signifies the increasing geostrategic importance of the Nolans project and securing global diversity in the NdPr [neodymium and praseodymium] supply chain,” said MD Darryl Cuzzubbo.
The financing from Canada builds on the backing of the Australian government’s conditional debt financing for the project. Arafura has secured A$150-million from the government’s Northern Australia Infrastructure Facility and $125-million from Export Finance Australia.
The Export-Import Bank of Korea also issued a letter of interest for up to $75-million.