Australia's Arafura Rare Earths secures up to $300 mln in finance from Canada (updated)

Arafura Rare Earths

27/05/2024 01:20

(Adds further details and context from paragraph 2 onwards)
       May 27 (Reuters) - Arafura Rare Earths  ARU.AX  said on
Monday it had secured up to $300 million in debt financing from
Export Development Canada (EDC) for its Nolans Project in
Australia's Northern Territory.
    The funding comes after Australia earlier this year pledged
up to A$840 million ($556.42 million) as Western nations
diversify the global supply chain for rare earths after
COVID-related snarls highlighted China-linked supply risks.
China produces more than 80% of the world's rare earths.
    The Nolans project is slated to be the country's third rare
earths processing plant after Lynas Rare Earths'  LYC.AX 
Kalgoorlie operations and Iluka Resources'  ILU.AX  Eneabba
heavy rare earths plant, which is under development.
    Arafura said it had received conditional approval for 68% of
the targeted $775 million senior debt funding for the project,
bringing it closer to a final investment decision.
    The company, whose largest shareholder is Australia's
richest person Gina Rinehart, already has supply agreements with
Hyundai Motor  005380.KS , Kia Corp  000270.KS  and Siemens
Gamesa Renewable Energy. It also has a provisional agreement
with General Electric  GE.N .
    The funding arrangement between Arafura and EDC was
facilitated by a unit of General Electric, the Australian
company said.
    Arafura is working with a group of foreign and domestic
commercial banks to seek the remaining funding for the project.

($1 = 1.5097 Australian dollars)

 (Reporting by Aaditya Govind Rao in Bengaluru; Editing by Tom
Hogue and Subhranshu Sahu)
 ((Aaditya.GovindRao@thomsonreuters.com;))