- Arafura Resources (ARU) awards the engineering design contract for the hydrometallurgical plant at the Nolans Project to consultancy, Hatch
- Based in the Northern Territory, Nolans is set to become a major supplier of critical minerals to the neodymium permanent magnet market
- Hatch will complete front-end engineering design works over the next nine months to allow tendering for construction on a fixed-price basis
- Meanwhile, the integrated project management team is working on other aspects of Nolans and targeting a final investment decision in the second half of 2022
- Arafura shares are down 1.72 per cent to trade at 14.3 cents
Arafura Resources (ARU) has awarded the engineering design contract for the hydrometallurgical plant at its Nolans Project to Hatch.
Based in the Northern Territory, Nolans is set to become a major supplier of critical minerals to the neodymium permanent magnet market.
Hatch is a consultancy specialising in project management, engineering and professional services and was selected from three international firms through a competitive process.
In line with ARU’s strategy, the next phase of the project will see Hatch complete front-end engineering design (FEED) works over the next nine months to advance engineering and equipment procurement.
The work will allow the company to tender a fixed price construction contract, which will be the basis for making a final investment decision (FID) in the second half of 2022.
In parallel, the integrated project management team, which comprises KBR and Wave International, is set to progress the remainder of Nolans ahead of the FID.
These activities will include incorporating best practice ESG measures to ensure commitments to global customers are met.
The integrated team will also ensure early construction is ready for tendering in line with the hydrometallurgical plant construction tender, among other steps.
Arafura Resources Managing Director Gavin Lockyer said the company was on track with its strategy to bring the Nolans Project into production.
“At the same time as the engineering works, we continue to progress advanced negotiations on senior debt facilities and offtake agreements which will support a final investment decision once the FEED process is complete in the second half of 2022,” he said.
Director of metals for Hatch in Australia and Asia, Claude D’Cruz, said Hatch was delighted to be selected.
“The Nolans Project represents a very exciting and significant rare earths development opportunity for both Arafura and Australia as a nation,” he said.
“We look forward with great energy and excitement to helping Arafura make the project a success.”
Arafura shares were down 1.72 per cent at 14.3 cents at 1:25 pm AEST.