Arafura extends binding offtake agreement

Key points

• Arafura extends offtake agreement with global wind turbine OEM
• Agreement to supply up to 500 tpa of NdPr oxide
• Pricing linked to global seaborne index

Full summary

Arafura Rare Earths Limited (ASX: ARU) has extended its existing binding offtake agreement with a company operating in the renewable energy sector, specifically involved in the design, manufacturing, installation, and maintenance of wind turbines. The agreement, which aligns with the Nolans project schedule, includes an annual contract volume of 500 tons per annum of NdPr oxide with optionality to provide flexibility. The agreement spans five years, with potential for extension up to eight years, and is priced in USD based on a global, seaborne pricing index. The extension is a significant step for Arafura as it continues to secure offtake agreements to support its production targets.