Australia's Arafura receives Germany nod for up to $115 mln loan (updated)

Arafura Rare Earths

04/07/2024 01:46

(Updates with background and further details on the loan
throughout)
       July 4 (Reuters) - Arafura Rare Earths  ARU.AX  has
received conditional approval from a German government
inter-ministerial committee for up to $115 million in loan
guarantees for its Nolans project, the Australian rare earths
miner said on Thursday.
    The company has secured several debt facilities after Prime
Minister Anthony Albanese said in March that Australia would
contribute up to A$840 million ($563.56 million) for the
project, the first combined rare earths mine and refinery in the
Northern Territory.
    The announcement came as Australia and its allies 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 untied loan guarantees from German export credit agency
Euler Hermes are over a 10-year tenor, Arafura said in a
statement.
    Earlier this week, Arafura said the Export-Import Bank of
Korea conditionally approved up to $150 million in debt
financing for the Nolans project.
    At the end of May, Export Development Canada gave
conditional approval for $300 million in debt financing for the
project.

($1 = 1.4905 Australian dollars)

 (Reporting by Adwitiya Srivastava in Bengaluru; Editing by
Subhranshu Sahu)
 ((Adwitiya.Srivastava@thomsonreuters.com;))