The NT Independent is providing an update of resource news from across the Northern Territory. Highlights this week include Tamboran starting stimulation activities in the Beetaloo Basin, Lucapa Diamond puts its Merlin project on hold, Rio Tinto starts recycling steel from its Gove refinery site, and Arafura Rare Earths receives financial support from the Export-Import Bank of Korea for its Nolans Project.

Arafura gets indicative financing support from KEXIM

Arafura Rare Earths Ltd have received a Letter of Interest (LOI) from the Export-Import Bank of Korea (KEXIM) for the provision of a maximum of US$150 million in debt financing for the company’s Nolans Project in the NT. The US$150 million will consist of two tranches – an amount equal to or more than US$75 million as a direct loan, and an additional amount equal to or less than US$75 million as a debt guarantee.

“We are very pleased to welcome KEXIM’s Letter of Interest to provide debt financing support for the Nolans Project. Arafura’s foundation offtake agreement with Hyundai and Kia was the beginning of a meaningful relationship with Korea, and our engagement with KEXIM further strengthens that relationship,” Arafura managing director Gavin Lockyer said.

Mr Lockyer said KEXIM’s support for Nolans reflects the important contribution that NdPr oxide from the project will play in delivering Korea’s long-term aspirations to be a global leader in electric vehicles and other sustainability-focused technologies.

Tamboran starts stimulation activities in Beetaloo Basin

Tamboran Resources Ltd has commenced stimulation activities at the Shenandoah South 1H (SS-1H) well pad, part of the 38.75 percent-owned and operated EP 117 permit in the Beetaloo Basin in the Northern Territory.

The program includes 10 stimulation stages over a 500-metre horizontal section within the Mid-Velkerri B Shale to be completed by the end of this year.

“We look forward to demonstrating the deliverability of the Mid-Velkerri B Shale in the Shenandoah South region, which is located in the deepest area of the western ‘core’ of the Beetaloo Basin. Results from the SS-1H well are a key deliverable that will support the sanctioning of our proposed 40 million cubic foot per day (MMcf/d) Pilot Project at Shenandoah South,” Tamboran CEO Joel Riddle said.

Lucapa’s Merlin feasibility study on hold

Australia-based Lucapa Diamond (LOM) has put on hold its Merlin project in the North Territory due to unfavourable capital market and diamond price environments. LOM said it will now focus on assessing a smaller scale, lower cost path to the development of the mine, which was once thought to have the potential to become Australia’s biggest commercial diamond operation.

“For the next 12 months, we will focus on further strengthening our balance sheet. Rather than raise capital to fund the original Merlin development, we will focus on a lower cost pathway to development using existing resources,” LOM managing director Nick Selby said.

The company currently operates two mines in Africa: the 40 per cent-owned Lulo mine, and the 70 percent-owned Mothae mine in Lesotho.

Rio Tinto starts recycling steel from the Gove refinery site

Rio Tinto (RIO) is undertaking the largest demolition project in Australia at its Gove alumina refinery site in the Northern Territory. RIO has also started shipping the scrap steel for recycling. The scrap steel being shipped is the equivalent of three Sydney Harbour bridges.

The demolition is part of the broader closure program at the company’s Gove operations in East Arnhem Land, where bauxite mining is expected to end later this decade.

The first shipment of about 15,000 tonnes of scrap steel will go to Asia to be converted into new steel wire, bar and beam products. A total of 142,000 tonnes of steel in 10 shipments will be exported to Asia from the Gove refinery site, where demolition began last year.

The Gove refinery processed bauxite mined nearby into alumina from 1972 to 2014 and was decided to be permanently closed in 2017.

R&D tax refund, NT Grant boosts Australasian cash position

A Research and Development tax refund of $218,442—for expenses incurred at Mt Peak Project in FY 2023—coupled with a co-financing grant from the NT Government of $43,299 under the Resource the Territory initiative, has boosted Australasian Metals’ cash position. With the receipt of the grant and the tax refund, Australasian now has $3.6 million cash at the bank.

The company has also finished its initial diamond-drilling program at its Mt Peak Project with assay results still pending. Mt Peake Project is located within the Northern Arunta pegmatite province of the NT. Australasian said the area is considered as a high prospect for hard rock lithium mineralization.

The company initiated a diamond drilling campaign last October, where three holes over 600 meters have been completed and samples sent to ALS Global in Perth for analysis.