Arafura Rare Earths extends wind turbine supply deal

• Arafura Rare Earths extended an agreement to supply up to 500 tonnes per annum of NdPr oxide to a global wind turbine manufacturer.
• The company's stock dipped 2.85% following the announcement, closing at $0.18.
• The deal secures long-term product delivery for the Nolans Project, with pricing linked to transparent global seaborne indexes.

Arafura Rare Earths (ASX:ARU) extended its binding supply agreement through subsidiary Arafura Nolans Project to deliver up to 500 tonnes per annum of NdPr oxide to a global wind turbine equipment manufacturer.

The extension prolongs an initial supply arrangement to cover a five-year term with potential extension options for up to eight years.

"Key terms of the agreement include an annual contract volume of 500tpa NdPr oxide with the optionality to provide flexibility to both parties whilst retaining appropriate offtake volumes," stated the company in its official market filing.

The agreement sets pricing in USD based on global seaborne pricing benchmarks such as the Benchmark Minerals Intelligence indices or SCP's Global Platts North America pricing index.

The extension reinforces supply security for the company's project timeline as it progresses through ongoing discussions with multiple prospective international buyers.

Following the announcement, the Arafura Rare Earths share price was down at $0.18.

The flagship Nolans project, located 135km north of Alice Springs in the Northern Territory, is structured as Australia's first fully integrated ore-to-oxide rare earths mine and processing facility.

The company aims to supply roughly 4% of global rare earth magnet demand to international automotive and clean energy markets.