Arafura Resources to Start Rare Earth Concentrate Production in 2011

Arafura Resources, Australian resource development company, plans to start production of rare earth concentrates in 2011. The firm is carrying out pre-feasibility study at Nolans mine in Northern Territory of Australia, in which the firm holds 100% equity, with capital investment at AUD 220 million. The firm aims to start rare earth concentrate production at an initial output 10,000 tonnes per annum in 2011 and to reach full production at 20,000 tonnes per year in 2013.Nolans mine is located at 135 kilometers north from Alice Springs, Northern Territory. The mine holds 18.6 million tonne minerals, containing rare earth oxides at 577,000 tonnes as of 3.1% grade. Phosphoric acid and uranium are also contained.Arafura Resources plans 20-year production of rare earths with output capacity at 20,000 tonnes per annum at Nolans. The firm will raise the operating rate from 25% to 75% during 2011 and bring up the average operation rate to 50%. The average operating rate would rise to 75% in 2012 and reach 100% in 2013.Produced rare earths would be valued at AUD 13.95 per kilogram as of averaged rare earth price during January-March 2008. The value is higher than Mount Pass of USA, Baotou of China and Mount Weld of Australia. Arafura Resources plans total investment for the process from ore mining to concentrate production while examines joint business to separate and refine rare earths such as neodymium and dysprosium.