Arafura Resources buoyed as Federal Ministers pledge support for Nolans Neodymium-Praseodymium Project in Northern Territory

Arafura Resources Ltd (ASX:ARU) (OTCMKTS:ARAFF) (FRA:REB) is encouraged by the strong support being demonstrated by the Australian Federal Government for the Nolans Neodymium-Praseodymium (Nd-Pr) Project in the Northern Territory. The latest show of support is in the form of a letter from the Minister of Trade, Tourism and Investment Dan Tehan and the Minister for Resources, Water and Northern Australia Keith Pitt. Arafura has also applied for grant funding under the Federal Government’s $1.3 billion Modern Manufacturing Initiative (MMI), part of a broader scheme to reinvigorate Australian manufacturing and supply chains. Through the MMI, the company is seeking funding for portions of its Front-End Engineering and Design (FEED) program that directly relate to the establishment of downstream processing capabilities. “Positive signs” Managing director Gavin Lockyer said: “We continue to see positive signs that the Australian Government is serious about supporting the development of critical minerals projects and downstream processing capacity within our borders. “The proactive stance from Ministers Tehan and Pitt has been extremely encouraging. “For Arafura specifically, the $200 million letter of support received last week from EFA was an important first step in lining up funding for Nolans and we remain in discussions with them, NAIF and others as we look to formalise arrangements ahead of a Final Investment Decision in the second half of 2020.” The letter from the Ministers states: The integrated rare earths mine and oxide processing project proposed for Nolans addresses several key priorities of the Morrison Government including job creation, capturing more economic benefit from Australia’s natural resources and building the nation’s resilience and security in the global supply of critical minerals; Export Finance Australia (EFA), which has issued a conditional letter of support to provide Nolans with up to A$200 million in long-tenor debt funding, considers that the project broadly aligns with the Government’s critical minerals policy objectives; and Projects that boost Australia’s ability to extract and process critical minerals are eligible to access dual funding through the EFA and the Northern Australia Infrastructure Facility (NAIF) as well as from other government agencies and initiatives and Arafura should continue to engage with these groups to progress Nolans.