Special Report: Arafura Rare Earths has signed an offtake deal with global wind turbine manufacturer Siemens Gamesa Renewable Energy A/S for neodymium and praseodymium (NdPr) from its Nolans Project in the NT.

Nolans’ NdPr will be used in the manufacture of permanent magnets used in offshore wind turbines assembled at Siemens Gamesa’s Cuxhaven production facility in Germany, where all components for the hub, generator and backend are assembled into the turbine and then shipped globally.

The annual contract quantities of NdPr metal are 200 tonnes per annum (tpa) commencing in 2026, increasing to 360tpa in year two and 400tpa (an NdPr Oxide equivalent of 520 tpa) in years three to five to align with ramp-up of the Project.

The offtake agreement has a five-year term which may be extended for a further two years by mutual agreement.

 

More than 50% of annual production contracted

This is the second offtake agreement signed by Arafura, with approximately 53% of the targeted 85% annual production from Nolans secured under long-term sale arrangements now contracted.

Arafura Rare Earths (ASX:ARU) says Siemens Gamesa’s process aligns with its offtake strategy to target original equipment manufacturers from geographic regions known to have supportive Export Credit Agencies (ECAs) and the recent appointment of KfW IPEX-Bank as an additional mandated lead arranger and ECA structuring bank for the Project’s debt financing.

The agreement will also support ongoing discussions with German ECA Euler Hermes, which recently provided Arafura with a non-binding letter of in-principle support for an untied loan guarantee of up to US$600 million to support the Nolans Project.

“Siemens Gamesa is the world’s leading manufacturer of offshore wind turbines, and this agreement complements our strategy to create supply diversification into the renewable and E-mobility sectors,” MD Gavin Lockyer said.

The agreement with Siemens Gamesa is subject to conditions precedent (to be satisfied by no later than 30 September 2026) including Arafura being eligible for Untied Loan Guarantee cover from UFK-Guarantees of the Federal Republic of Germany for the financing of a raw material project, plus completion of construction and development of the Nolans, and commencement of commercial production and ramp up.

 

 

 

This article was developed in collaboration with Arafura Rare Earths, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Read MoreRare Earths

Featured Companies

You might be interested in