Arafura’s Rare Earths Resource Intrinsically Competitive
Gavin Lockyer, Managing Director of Arafura Resources Ltd. (ASX: ARU) in an interview with InvestorIntel CEO Tracy Weslosky discuss the Nolans Bore Project’s competitive advantage. The asset supplies neodymium and praseodymium. These two rare earths are essential to the magnets found in motors running on graphite batteries. Arafura’s extraction program takes advantage of the phosphate infused ore by using the phosphate to digest the ore from within. This cost effective technique creates residual phosphate acid, providing revenue from the fertilizer industry. Gavin tells us to anticipate the continuation of piloting activities and an upcoming feasibility study.
Tracy Weslosky: It’s fantastic to see you all the way over from Australia. For those out there in InvestorIntel, we’ve been with Arafura for years. You’re one of the original rare earth companies we started following in 2008-2009.
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Gavin Lockyer: We think that InvestorIntel does a great service. We were happy to support them in any way we can.
Tracy Weslosky: The InvestorIntel audience may remember the boom in the rare earth industry where we went from approximately 7 to 10 rare earth companies to over 500. Can you provide us with an overview of Arafura’s competitive advantage?
Gavin Lockyer: I think the obvious one Tracy is around our resource itself. Very few other projects out there are enriched in neodymium and praseodymium as Arafura’s Nolans Bore project is. That’s a natural competitive advantage. Combine that with the phosphate that gives us operating credit, I think we’ve got some real advantages over our competitors.
Tracy Weslosky: I’d like to bring up our analyst, Lara Smith, who recently had a headline: “Massive Cash Injection For Anticipated Rare Earth Development.” What exactly does she mean by that?
Gavin Lockyer: We came and tested the market earlier this year and we were pleasantly surprised that on the back of the lithium and the battery technology metals the market’s now starting to understand that all those batteries must drive an electric motor and that electric motor to be efficient must have neodymium-praseodymium magnets in…to access the full interview, click here
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