According to Asian Metal.com, Australia`s Arafura Resources Limited has recently announced that it has signed a Memorandum of Understanding (MoU) with JCGF Magnetic Materials Technology Co., Ltd. to supply its wholly-owned Neodymium oxide produced by Nolans project BJM is a first-class manufacturer of neodymium-iron-boron (NdFeB) permanent magnets in China, with an annual output of approximately 6,500 tons and a Hitachi Metals patent license. About 85% of JCGF Magnetics' sales come from outside China, mainly for global well-known automotive, wind energy, consumer electronics, industrial automotive companies, and original equipment manufacturers (OEMs) in the supply chain.
The memorandum of understanding is not binding. According to the memorandum, Allafra Resources supplies Beijing Magnetic with a long-term supply of 900 tons of dysprosium neodymium oxide, accounting for a quarter of the projected annual output of 3,600 tons of the Nolan project, and provides a framework for negotiating a final offtake agreement.
In the memorandum of understanding, JCGF Magnetics may assist Arafura Resources in project financing by introducing original equipment manufacturers. The company also suggested that it is signing a memorandum of understanding on the balance of its praseodymium and neodymium oxide products, as well as other rare earth products, and phosphoric acid, and will inform the market of progress when the progress is completed.