Arafura sings offtake term sheet with Traxys North America
ASX-listed Arafura Rare Earths has signed a binding offtake term sheet with global physical trader Traxys North America to support the revitalisation and onshoring of domestic manufacturing across automotive, defence and advanced technologies sectors in the US.
It is Traxys’ intention to supply 500 t/y of neodymium/praseodymium (NdPr) oxide and 7.5 t/y of dysprosium/terbium (DyTb) oxide produced at Arafura’s Nolans project, in Australia’s Northern Territory, into the US supply chain, including potential supply into the US Export-Import Bank of the United States- (Exim-) managed Project Vault, which seeks to provide a tactical buffer against critical minerals supply shocks.
This agreement is separate and in addition to the March 2025 agreement concluded between Arafura and Traxys Europe for the supply of up to 300 t/y of NdPr oxide.
The agreement with Traxys North America is for a period of five years with the option to extend by two years by mutual agreement.
Pricing will be in US dollars and based on a global, seaborne pricing index such as the recently established Benchmark Minerals Intelligence indices or S&P’s Global Platts North America pricing index.
Arafura expects to finalise and execute a long form offtake agreement prior to the sunset date of six months from execution of the term sheet.
“We have long believed that the right partners would define the quality and durability of Arafura. The offtake relationships we have established are not just transactional arrangements. They reflect growing alignment between industry participants and government-supported initiatives aimed at establishing resilient critical minerals ecosystems as an imperative, not merely an opportunity.
“As we advance this strategic agreement, we achieve another milestone in delivering the company’s broader long-term offtake objectives and financing strategy in support of a future investment decision,” says Arafura MD Darryl Cuzzubbo.
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