Rare earth mineral supplier Arafura and wind power pioneer Siemens Gamesa have signed an offtake agreement.
The offtake agreement concerns the supply of neodymium and praseodymium (NdPr) from Arafura’s Nolans project to Siemens Gamesa.
The Nolans project is a rare earth ore to oxide mine and processing facility located 135km north of Alice Springs.
The offtake agreement outlines that Arafura would supply NdPr to Siemens Gamesa over a five-year term, which could be extended for a further two years if both parties mutually agree.
The amount of NdPr Arafura must supply to Siemens Gamesa begins with 200 tonnes per annum (tpa) in 2026, increasing to 360tpa in the second year and 400tpa in the third to fifth years to keep up with the project progress.
The contract is binding subject to certain conditions’ precedent being satisfied by no later than September 30 2026, including completion of construction and development of the project.
Siemens Gamesa will use the NdPr supplied by Arafura in the manufacture of permanent magnets used in offshore wind turbines assembled at its Cuxhaven production facility in Germany. The Cuxhaven facility is where all components for the turbines’ hub, generator and backend are assembled and then shipped globally.
Arafura managing director Gavin Lockyer said the company was happy to have concluded negotiations for the second offtake agreement with Siemens Gamesa.
“We are delighted to have concluded negotiations for our second offtake agreement,” he said.
“Siemens Gamesa is the world’s leading manufacturer of offshore wind turbines, and this agreement compliments our strategy to create supply diversification into the renewable and e-mobility sectors.”