IntelRadio’s Ellis Martin interviews Arafura Resources on their world-class rare earths resource in the Northern Territory of Australia
October 6, 2014 — The following is an IntelRadio news report hosted by Ellis Martin with Richard Brescianini, General Manager of Exploration & Development for Arafura Resources (ASX: ARU) on their world-class rare earths resource in the Northern Territory of Australia and is a special feature of InvestorIntel.
Ellis Martin: Today I’m speaking with Richard Brescianini, General Manager of Exploration & Development for Arafura Resources, trading on the ASX under the symbol ARU. Arafura Resources is an Australian company with a world-class rare earths resource in the Northern Territory of Australia. The Nolans Rare Earth Project is well advanced and Arafura is on track to enter the global supply chain this decade. Richard, welcome to IntelRadio.
Richard Brescianini: Thank you Ellis. I really appreciate it.
Ellis Martin: Would you give our listeners new to your company an overview, if you don’t mind?
Richard Brescianini: Yeah, sure. We’ve been around for a while. I’m sure most of your listeners on InvestorIntel will know this, we’ve been working at rare earths without being distracted on other metals. We’ve been working on rare earths since about 2005 focusing on the Nolan’s Project in the Northern Territory. It’s been a long journey for us, but we think we’re better positioned now than we ever have been to execute the project. We’re reasonably well cashed up at this point in time as well. We’ve had our ups and downs in that regard as well over the years, as most other companies have, but, again, we’re well positioned insofar as our ability to execute our project with our cash position. We’ve learned a lot over the years. Our major asset is in the Northern Territory in Australia. It is an isolated location, but it’s not a remote location. That gives us plenty of advantages. We’re only a small company. We only have around 20 people in our organization. We have a couple of offices in Australia. Perth is our main office. We have a regional office in Darwin in the Northern Territory where we keep quite close to the regulators in that particular jurisdiction. We think it’s an advantage having an office there. Over the years we’ve saddled up to different shareholders, including Chinese shareholders. We think that separates us from the pack insofar our particular alliances are concerned. So that’s really us in a nutshell. We’re focused on rare earths, the Nolans Rare Earths Project in the Northern Territory and we’re inching closer to completion of the project.
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Ellis Martin: Speaking of Chinese shareholders, you will be producing neodymium and praseodymium, two main materials used in making magnets. The demand for magnets is ever increasing worldwide. Mining companies such as yours that can deliver these materials may offer very nice value to shareholders. Now you mentioned the Chinese. Are the Chinese magnet producers very interested in Arafura and the Nolans Rare Earths Project?
Richard Brescianini: I think that magnet producers worldwide are interested in Arafura. You make a good point that we have, I guess, a natural advantage is the way that you describe it, having very high concentrations as part of our resource, the Nolans resource. Again, you’re quite right they’re the building blocks of the neodymium iron boron magnets or neo magnets, as others would know them. A natural advantage there’s high concentration. As I say, it’s not just the Chinese magnet manufacturers that are interested in Arafura. There are also magnet manufacturers in Europe, Japan and South Korea that have quite a bit of interest. Now it’s quite unlikely that we would have a direct relationship with a magnet manufacturer when we go into production. We’ll be a producer of rare earth oxides and so there are other parties that would be, I guess, in-between Arafura and the magnet manufacturers, but, again I’d like to stress that it’s not just Chinese magnet manufacturers, although they produce most of the world’s magnets and they are increasingly building on that position. There are magnet manufacturers elsewhere in the world that would be very, very interested in Arafura’s product. I’d also like to add that we recently attended a conference in China. It was in June. At that particular conference, the International Conference on Rare Earth Resources and Market, was heavily invested in by magnet manufacturers and others who participate in the rare earth’s market in China.
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