The NT Independent is providing an update of resource news from across the Northern Territory. Highlights this week include Arafura’s massive deal with Hyundai and Kia, Todd River Resources raising $3.18M to speed-up drilling and exploration works in the NT, the Federal Government releasing $58M to Energy Resources Australia for Ranger uranium mine rehabilitation, and Tamboran Resources completing the acquisition of Beetaloo assets from Origin Energy.

Arafura locks supply deal with Hyundai and Kia

Arafura Rare Earths Ltd has signed a binding supply deal with South Korea’s Hyundai Motor Co and its unit Kia Corp to supply 1,500 tonnes of rare-earth oxide annually.

Neodymium-praseodymium (NdPr) oxide, which Arafura will supply from its Nolans Project in the Territory, is used for the production of electric motors in electric vehicles. Arafura’s deal with Hyundai locks in the sale of about 40 per cent of its annual output for seven years, or up to 1,500 tonnes of NdPr.

Arafura plans to produce about 4,400 tonnes of rare earth oxides from Nolans when production begins in late 2025. It has also been in talks with GE Renewable Energy since July over the terms of an offtake deal with the US energy major to supply rare earth oxides for use in GE’s offshore wind turbines.

It’s expected there will be 620 jobs during construction and 280 full-time ongoing jobs once the mine is in production.

“We are delighted to have signed our first binding offtake agreement concerning the Nolans Project,” Arafura managing director Resources Gavin Lockyer said. “This establishes the foundation for a long-term partnership with globally respected automotive dealer Hyundai.”

Tamboran Resources completes acquisition of Beetaloo assets

Tamboran Resources Limited (TBN) announced that it has completed the acquisition of Beetaloo Basin assets from Origin Energy Ltd (ORG). TBN said the conditions precedent required under the sale and purchase agreement have been satisfied and operatorship of EPs 98, 117, and 76 have already been transferred to the company.

Tamboran is now the holder of the largest consolidated position in the deepest area of the Betaloo Basin. Company managing director and CEO Joel Riddle said the company raised about $195 million to fund the buy-out and assist in the commercialisation of these world-class assets.

“We look forward to working closely with our local NT communities, to generate further jobs and opportunities for all Territorians,” he said. “Tamboran is very excited to be at the forefront of the development of the significant low-CO2 unconventional gas resource in the Beetaloo Basin, which is expected to bring significant employment and royalties to the Northern Territory.”

$58m released to ERA for Ranger mine rehabilitation

The Federal Government has granted Energy Resources Australia (ERA) $58 million in security bonds for the rehabilitation of the defunct Ranger uranium mine in Kakadu National Park. ERA, which sold its last stockpile of uranium in May, has requested the release of a conditional payment from the Ranger Rehabilitation Trust Fund.

Rio Tinto—which owns 86 per cent of ERA—had earlier loaned ERA $100 million to cover the rehabilitation costs.

ERA said the bond relates to previously completed rehabilitation activities at the mine from January 9, 2021, to June 30, 2022. Following the drawdown, $481 million will stay in the mine’s security bond—which by law is a deposit paid to the Commonwealth to cover the full costs of rehabilitation in the event of default by the company.

Early this year, however, Ranger released re-appraised figures revealing that the rehabilitation costs had skyrocketed to $2.1 billion and would not be completed by 2026 when the mine lease concludes.

Todd River set to raise $3.18 M for drilling plans

Todd River Resources (TRT) will be raising $3 million through a share placement and purchase plan to accelerate exploration work in the Northern Territory and WA projects, the company has said. TRT will be issuing 51 million shares at 1.8 cents per share, in two tranches, to raise $930,000. Another $2.25 million will be raised by the company under its share purchase plan, with eligible shareholders able to subscribe for up to $30,000 worth of new shares.

The funds will be used for drilling work at several of its exploration projects in the first half of 2023 and general working capital.

“The funds raised will strengthen our balance sheet as we embark on a new summer exploration campaign in the Wheatbelt of Western Australia and also look forward to an exciting 2023 working in both the Northern Territory at Mt Hardy as well as at our Nerramyne and Bangemall Projects,” Todd River Resources managing director Will Dix said.

TRT is also planning a possible pro-rata issue of new options to eligible shareholders to reward them for their ongoing support.