Arafura Resources has announced it has signed a memorandum of understanding with Shenghe Resources that gives the Chinese company an opportunity to co-fund the development of the Nolans rare earths project in the Northern Territory.
Arafura and Shenghe will examine opportunities for the sale and distribution of rare earths to Shenghe’s existing customers, with both companies committing to look for opportunities and initiatives to develop an international rare earths business
On completion of definitive feasibility study, Shenghe will be provided with the opportunity to co-fund the development of Nolans
Arafura claims the MOU marks the first Australian deal by Shenghe, which has a market capitalisation of 8.3 billion yuan (A$1.5 billion) and is one of a handful of companies that is allowed to export rare earths outside of China, as announced by the Chinese Ministry of Commerce.
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