Arafura Rare Earths: Dual Traxys Agreements Tie Nolans to Both Sides of the Atlantic
14.05.2026 - 04:00:53 | boerse-global.de
Arafura Rare Earths saw its shares surge 9.09 percent to A$0.36 on 13 May 2026, a day after the company disclosed a binding offtake agreement with Traxys North America. The reaction underscores how far the Nolans project has come – and how much still hangs in the balance ahead of a shareholder vote next month.
The new contract covers 500 tonnes of neodymium-praseodymium oxide and 7.5 tonnes of dysprosium-terbium oxide per year from the planned Northern Territory project. Pricing will track independent indices such as Benchmark Minerals Intelligence and S&P Global Platts North America, giving Arafura exposure to market upside while keeping the formula transparent for the buyer. The initial term runs five years, with an optional two-year extension.
That deal sits alongside an earlier pact with Traxys Europe, signed in early 2025, for up to 300 tonnes of NdPr oxide annually. Taken together, the two agreements lock in more than 66 percent of Nolans’ planned nameplate capacity of 4,440 tonnes per year of NdPr oxide. Separate contracts also cover the project’s dysprosium and terbium output.
A deliberate separation, a strategic aim
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Traxys North America and Traxys Europe operate as legally distinct entities, a structure that allows Arafura to meet both US and EU content requirements for critical minerals. The North American arm has indicated it will channel the material into US supply chains, potentially through Project Vault, a procurement programme run by the US Export-Import Bank designed to wean American industry off Chinese rare earth processing.
Traxys itself is no boutique trader. With more than 65 commodities in its portfolio, 20 global offices and annual revenues of roughly US$10 billion, it brings commercial heft and established logistics networks. The combination of light and heavy rare earths in a single offtake contract is relatively unusual in Western supply agreements – and analysts note it strengthens the project’s appeal to financiers because it addresses critical by-products as well as the main product.
Closing the gap, one tonne at a time
Despite the progress, a financing gap remains. Lenders typically look for 80 percent offtake coverage before committing to project debt. Arafura still needs to place roughly 1,200 tonnes of NdPr oxide annually. Management has confirmed ongoing discussions with European buyers for approximately 500 tonnes, leaving a further 700 tonnes to be secured.
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On the ground, Nolans is edging closer to a final investment decision. Arafura has already purchased a camp with more than 200 rooms and finalised a compensation agreement with the site’s tenant. Construction is expected to take 37 months, with first production targeted for the second half of 2029.
The next make-or-break moment comes on 10 June, when shareholders will vote on the project. Arafura’s board plans to take a final investment decision before the end of June. If both hurdles are cleared, Nolans will become one of the few non-Chinese sources of the magnet metals that power electric vehicles, defence systems and advanced industrial electronics – a prize that investors are watching closely.
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