EDITOR: | October 12th, 2016 | 2 Comments

Arafura attains Major Project Facilitation Status with Australian Government

| October 12, 2016 | 2 Comments
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arafura-resources-limitedLast week, Arafura Resources Limited (ASX: ARU) released its 2016 Annual Report. This was then swiftly followed by the news that the Australian government had awarded Arafura’s Nolans Rare Earth Project with Major Project Facilitation (MPF) status. As such the Nolans project joins 17 other significant projects around Australia including Shell’s Prelude FLNG Project to be granted this title.

In terms of its annual report update, the main highlights included the fact that the Nolans Project Work Programs was completed. In particular the company improved the process flowsheet targets at Nolans Bore. The Works Program also delivered an optimal plant feed and throughput that resulted in an adjustment to the planned annual rare earth output to include 3,601 tonnes of NdPr oxide in 14,000 tonnes of TREO over the twenty three year life of mine.

The annual report also confirmed that the final assessment process would be completed by the end of the first quarter next year and thereafter the project will move into the construction phase. If all goes according to plan, Nolans could see its maiden production by 2019/2020. The company is targeting an initial annual mine rate of 525,000 tonnes of ore.

As regards the MPF program, this is managed through the Department of Infrastructure and Regional Development and the status will last until 2019. As a beneficiary of the program, it provides Nolans with support to ensure a timely and efficient approvals process including co-ordination of all relevant Australian and Northern Territory government processes that occur.

The status represents an important milestone in the project and would assist Nolans in gaining its environmental approvals, which are currently pending and is also a vote of confidence which could help the company attract finance.

Arafura’s share price rose slightly to $0.075 on the 22nd of September following the news of its MPF status, peaking at $0.076 at the end of September. This compares to an average share price of $0.071 in the week immediately prior to the announcement (14th-21st September).


Lara Smith

Editor:

A Sr. Editor and Analyst for InvestorIntel, Lara is an internationally recognized expert in the field of mining analysis and a well-known speaker, Lara has ... <Read more about Lara Smith>


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Comments

  • Bruce Smith

    What justifies the Arafura Resources share price when compared with Alkanes

    October 13, 2016 - 2:13 AM

  • Sam Amamoo

    Thank you for your article on Arafura resources; its elevation to major project facilitation status By the Australian Federal government is very good news. The Nolan’s project when commissioned will make a significant contribution to heavy rare earths production outside China.

    However, you would be wise to revise your numbers for the share price of Arafura that you quote in your article because the values are far and away very different from those available for ARU on the ASX.

    To give you an idea, the highest value that the share price of ARU has reached during the last few years was AUD $0.22 on 22 January 2013.

    It would be helpful for potential investors in Arafura to get the accurate share price of the company’s stock.

    October 13, 2016 - 2:30 AM

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