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Arafura Resources rare earths mix leaps above USD 120 per kilogram

Steel News - Published on Thu, 24 Mar 2011

Arafura Resources Limited announced that there have been further substantial increases in the prices of Rare Earths quoted by UK based Metal Pages. The price for 1 kilogram of Nolans product has now risen to USD 120.55 which equates to approximately USD 3,375 per tonne of in situ ore.

Dr Steve Ward MD and CEO of Arafura said that “Arafura remains on track to deliver first production in 2013 of an annualized 20,000 tonnes of Rare Earth Oxides from our Nolans Project. We are one of only a few potential rare earth producers which can meet growing non Chinese demand in the short to medium term. We are currently in detailed discussions with non Chinese major users around the world as they realize the strategic importance of rare earths to their own business aspirations.”

Dr Ward said that China currently produces about 97% of the world’s rare earths and has embarked on a program to reduce export quotas to retain product for domestic consumption. This exacerbates the already tight supply conditions in regions outside of China. Following our successful capital raising of AUD 90 million in the latter part of 2010, Arafura continues to advance its work programs at full pace to deliver the Nolans Project Bankable Feasibility Study as evidenced by our recent announcement of the appointment of a key engineering contractor.

Despite uncertain global financial markets and the tragic events in Japan the funds raised last year put us in a great position to move forward with our schedule. It is becoming clearer that the era of low priced Rare Earths is behind us. We believe the current and forecast market dynamics of supplies remaining tight create a wonderful opportunity for Arafura.

Posted By : admin on Thu, 24 Mar 2011
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