Tax refund highlights Australian support for Arafura’s Nolans rare earths project
Link copied to
Special Report: Arafura Resources has received a handy $1.5m government tax offset for eligible research and development (R&D) spending.
The offset relates to money spent on the design and operation of the flowsheet piloting program for the company’s Nolans neodymium-praseodymium (NdPr) project in the Northern Territory.
Arafura Resources (ASX:ARU) said the latest offset took total cash receipts from the R&D tax incentive up to a tidy $40.6m.
It added that the continued eligibility of Nolans for the R&D tax offsets, along with the grant of Major Project Status from the Australian and Northern Territory governments, highlights the strategic and advanced nature of the project and its potential net economic benefit to regional Australia.
Nolans currently boasts an economic ore reserve of 19.2 million tonnes at 3 per cent total rare earths. In-demand NdPr makes up a significant 26.4 per cent of the total rare earths content.
NdPr is used for the manufacture of rare earth permanent magnets, particularly neodymium iron boron (NdFeB) magnets that are finding increased use in electric cars and other high-tech devices.
The company recently kicked off drilling and metallurgical programs designed to increase the mine life at Nolans beyond the existing 23 years.
Arafura is drilling up to nine core holes at its Nolans Bore deposit, five of which are targeting shallow resources in a part of the deposit where little or no drill core is currently available – aimed at expanding the ore reserve and adding to the project’s mine life.
The other four holes will target deep extensions of NdPr-rich mineralisation 100-200m beneath the planned final pit after 23 years of mining.