Australian rare earth exploration company Arafura recently signed an agreement to supply praseodymium oxide to Baotou Tianhe Magnetic Materials Technology Co., Ltd., a Chinese neodymium iron boron enterprise. According to the memorandum of understanding signed by both parties, Arafara will supply 900 tons of praseodymium neodymium oxide to Baotou Tianhe through its Nolans project in the Northern Territory.
Rare earth is a general term containing 17 elements such as praseodymium and neodymium, and is widely used in various fields from high-tech digital products to military equipment. Although Australia's rare earth reserves account for only 2.8% of the world's total reserves, more than half of new mining projects are in Australia.
Arafara has previously reached a preliminary agreement of 900 tons / year praseodymium neodymium with another Chinese company, Beijing Magnetic Materials Technology, and is expected to reach a binding off-take agreement.