India’s bid to establish its own rare earth magnet industry is creating new opportunities for Australian producers, with the Nolans rare earths project securing an offtake agreement to supply one of the country’s emerging manufacturers.
The binding term sheet will see up to 500 tonnes per annum (tpa) of neodymium-praseodymium (NdPr) oxide supplied over an initial five-year period, with the option to extend the agreement by a further two years. Pricing will be based on a seaborne traded index.
The deal gives Nolans an early foothold in a market undergoing rapid expansion. Backed by a $1.2 billion government incentive program, India is targeting 6000tpa of rare earth permanent magnet manufacturing capacity across five projects, with Nolans’ new offtake partner seeking to become one of the scheme’s beneficiaries.
The agreement also signals that commercial momentum continues to build following Nolans’ final investment decision in May. Alongside the new customer, discussions are continuing with existing counterparties around pricing, contract volumes and the inclusion of heavy rare earths, while maintaining all current offtake agreements.
Commercial progress is being matched on the ground.
Priority work to reinstate accommodation, water and power infrastructure has been completed, clearing the way for the next phase of the project. With the delivery team assembled and mobilisation underway, Nolans remains on track for a targeted September construction start.
Attention is also turning to local industry. Procurement roadshows across the Northern Territory will connect regional businesses with upcoming work packages as the project moves towards construction.
The final piece is financing.
Lenders are working through final credit approvals ahead of executing project finance documentation, with financial close remaining subject to due diligence, shareholder approval and other conditions precedent.
Read more: How Nolans became one of Australia’s most strategically significant critical minerals projects.
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