Arafura Rare Earths Limited · ASX:ARU
Arafura Rare Earths — Arafura Resources — Non-Deal Roadshow (March 2022)
60 slides from Arafura Rare Earths's roadshow presentation, March 2022
Slide 1: Nolans Project Roadshow
30/03/2022 Nolans Project Roadshow March 2022 (ASX:ARU) 1
Slide 2: Disclaimer
30/03/2022 Disclaimer This presentation has been prepared by Arafura Resources Limited (Arafura, Arafura Resources or the Company) and is of a summary form only and therefore contains general background information which may not be complete. It should be read in conjunction with, and full review mad
Slide 3: Agenda
30/03/2022 Agenda Team Introduction Overview of Rare Earths and the Nolans Project Environmental, Sustainability and Community Project Delivery Project Operations Questions (ASX:ARU) 3
Slide 4: Arafura Resources team
30/03/2022 Arafura Stewart Watkins Resources General Manager Projects Michael Robinson ESG Manager Sam Binnie Project Manager Non-process Infrastructure Arafura Resources Cultural Awareness Workshop, August 2021 (ASX:ARU) 4
Slide 5: Nolans Project
30/03/2022 Nolans Project (ASX:ARU) 5
Slide 6: Rare Earths
30/03/2022 Rare Earths The Nolans Project contains all the Rare Earths but is particularly Rare Earths are essential to building a enriched in the ‘Magnet clean energy future. The transformation of Feed’ Rare Earths NdPr the global economy relies on a secure and long-term supply 60 Nd 59 Pr NEODYMIU
Slide 7: NdPr Price Rise and Global EV Sales
30/03/2022 Global EV Sales NdPr Price Rise (BEV+PHEV) Price Chinese increasing EV Sales Inventory in line with have down by Chinese demand DOUBLED in the last 12 ~60% producers and supply near full since mid-2020 months capacity Source: EV Volumes, Inside EV Source: Lynas, BAINFO, Asian Metals (ASX:
Slide 8: Overview of Nolans Project
30/03/2022 Overview of Nolans Project Globally Shovel ready 100% Australian Strategic project Domiciled ~A$1 billion investment to develop & build ~A$200 million 620 regional jobs to annual cost to oper ate build: 280 to oper ate minimum 38-year can supply ~5% of global mine li fe rare earth magnet
Slide 9: Project Location
Project Location 30/03/2022 Located in the Northern Single Site offers product Territory, 135km from traceability and waste Alice Springs management certainty Nolans site in close proximity to existing key infrastructure Stuart Hwy 10km East Alice Springs railyard, airport and other services 135km s
Slide 10: Project Layout
Project Layout 30/03/2022 (ASX:ARU) 10
Slide 11: Mining – Pit Design & Mining Method
30/03/2022 Mining – Pit Design & Mining Method Multi pit stage mining, conventional open-cut initially One final large pit Design to cater for 140t dump trucks (e.g. Cat785’s) Excavators proposed 120t – 200t class Blasting 5m benches Campaign mining for first 7 years (ASX:ARU) 11
Slide 12: Mining – Mine Schedules
30/03/2022 Mining – Mine Schedules Maximise NdPr production All Ore blended on ROM, road train haulage to crusher Prioritise Measured and Indicated high grade pits first Campaign mining strategy 28 years of mining for up to 38 years of processing Step changes in mine production due to reducing ore g
Slide 13: Processing
Processing 30/03/2022 Complex chemical plant like an alumina refinery (Gove), nickel refinery (Townsville) or integrated plant (Olympic Dam) not like a gold plant (Tanami) or concentrator (Core Lithium) Small flotation plant followed by large hydrometallurgical plant and supported by sulphuric acid
Slide 14: Process Plant Area (≈50 hectares)
30/03/2022 Process Plant Area (≈50 hectares) Darwin CBD Alice Springs (ASX:ARU) CBD 14
Slide 15: Infrastructure – General
30/03/2022 Infrastructure – General Sealed site access road – 15km Power station Village – 650 construction, 200 Gas fired with turbines operations Produces steam (incl. from acid plant) Site communications BOO contract including GHG Microwave link or optical fibre at reduction in PPA Aileron Power
Slide 16: Infrastructure – Mine Area
30/03/2022 Infrastructure – Mine Area Unsealed mine access road – Permanent infrastructure 8.5km Fuel farm and refueling Mine buildings by contractor Water supply Mine office Wastewater storage Crib & ablutions Power supply (local generating set) HV/LV workshop Washdown system for HV & LV Tire chang
Slide 17: Infrastructure – Plant Area
30/03/2022 Infrastructure – Plant Area Admin and other offices Crib rooms & ablutions Emergency response/security/ Central control room first aid Laboratory Fixed plant workshop Wastewater treatment plant Warehouse Fuel storage and LV refuelling Reagents store Change house & laundry (ASX:ARU) 17
Slide 18: Borefields & Water Supply
30/03/2022 Borefields & Water Supply $3.5m spend on drilling, testing, modeling and monitoring to define water resource Monitoring continues to better understand aquifer Five borefields of 3 bores Pumping to site in 500mm buried pipe Large array of monitoring bores to manage the water resource 18
Slide 19: Logistics
Logistics 30/03/2022 Rail from either Darwin or Adelaide to Alice Springs Road from Alice Springs to site Approx. 250,000tpa incoming, 150,000tpa outgoing, majority is liquid chemicals in isotainers Some infrastructure required in Darwin for sulphur and phosphoric acid Contract logistics with (ASX:A
Slide 20: Project Economics
30/03/2022 Project Economics Robust economics Mining and Production based on long term Mine Life (years) 38 NdPr price of NdPr Oxide (tpa) 4,440 US$87/kg SEG/HRE Oxide (tpa) 474 Phosphoric Acid (tpa 54% P2O5 MGA) 144,393 Current price US$166/kg* Financial US$ A$ Capital Cost ($m) 768 1,056 NdPr Oxid
Slide 21: Current Project Status
30/03/2022 Current Project Status (ASX:ARU) 21
Slide 22: Project History
Project History 30/03/2022 1997 The beginning of Arafura Resources 2001 2003 2005-2007 2007 2007-2010 Acquired Tenements Maiden Resource ANSTO Testing on Pre-Feasibility Study Metallurgical HCl Pre-Leach with Processing in Testwork Darwin 2013 2011 2011-2012 2010-2012 2010 Trade off to Major Drillin
Slide 23: Nolans NdPr Project
30/03/2022 Regulatory Nolans Federal & NT Environmental Approvals secured NdPr Government and Minister support for senior debt facility Project Security of Tenure & Social License to Operate Native Title Agreement Shovel Mineral License Granted Federal and Northern Territory Major Project Status Rea
Slide 24: Nolans Key Development Milestones
30/03/2022 Nolans Key Development Milestones *Milestone targets are indicative and subject to change and are contingent upon funding, offtake activities and general market conditions 1. FID and First Production are both subject to outcomes with offtake and financing. 2. Conditional letters of suppor
Slide 25: Current Work Program
30/03/2022 Current Work Program Geology and Mining – Preparation for tendering mining contract Process plant – FEED & constructability reviews by Constructors in preparation for tendering Non-process Infrastructure – FEED, re-costing, detailed design for early works in preparation for tendering & co
Slide 26: Indicative Timeline
Indicative Timeline 30/03/2022 Timeline subject to change and is contingent on funding and offtake activities Front-End Engineering & Design (FEED) commenced in August 2021 FID targeted in second half of 2022 Confidence growing around funding and offtake with immediate move to get Arafura personnel
Slide 27: Environment, Sustainability & Community
Environment, 30/03/2022 Sustainability & Community (ASX:ARU) 27
Slide 28: Our Approach
30/03/2022 Our Approach We have met consistently with our key stakeholders over many years since 2006. Brian Fowler has worked for many years on this project Karen Sheldon Roundtable in 2019 Begin the Local and Indigenous Engagement employment Strategy 24 orginisations consulted with Consultation wi
Slide 29: To date, Arafura has:
To date, Arafura has: 30/03/2022 NTA for Exploration and Operations In excess of $50m of on Discovery of new aquifer ground exploration. $3.5m water exploration & allowed permanent water Exploration agreement with Indigenous engagement traditional owners provides funds ongoing monitoring to to be av
Slide 30: Local Content & Opportunities
30/03/2022 Local Nolans will deliver significant economic, business and employment opportunities to Central Australia Content & as well as the remainder of the NT. Identify opportunities for locals, (business, Opportunities employment, services etc.), don’t over promise and under deliver. Don’t crea
Slide 31: Nolans Benefits for Territorians
Nolans 30/03/2022 30-month Benefits for construction period Peak workforce of 650* $1 billion initial capital spend Territorians Minimum 280* permanent jobs across 38-year the Territory Territory Benefit Plan operational $225 million annual spend approved life 1. Outlines Arafura’s commitmen
Slide 32: Opportunities for Aboriginal Territorians
30/03/2022 Opportunities for Aboriginal Territorians Arafura will continue to consult with NT and Local governments, Indigenous organisations and the CLC to determine the capacity of the local labour market and businesses to meet the Nolans Project’s workforce and procurement needs. Indigenous Engag
Slide 33: ESG - Current activities and initiatives
30/03/2022 ESG - Current activities and initiatives “Arafura’s ESG commitment is to be a trusted global leader and supplier of choice for sustainably mined and processed rare earth products, helping our customers deliver clean and efficient technologies. We are committed to delivering positive inter
Slide 34: Project Execution
30/03/2022 Project Execution (ASX:ARU) Commercial in Confidence 34
Slide 35: Execution Sequence
30/03/2022 Execution Sequence Enabling Works – access to site and construction water Early Works – infrastructure & services to support main scopes Main Construction Works – staged mobilization of all Contracts Commissioning – progressive activity up to wet stages Pre-production Mining – clearing, p
Slide 36: Contracting Strategy
30/03/2022 Contracting Strategy No. 1 NPI Package Title Accommodation Village & Construction Camp 2 Information and Communications Technology (ICT) 3 Wastewater System (WWTP Only) 4 Mine Fire Water Pump Package 5 Diesel / Fuel Storage and Distribution Mine 6 Light/Heavy Vehicle Washdown Bays 7 Boref
Slide 37: Contract Types – Major
30/03/2022 Contract Types – Major Process Packages Packages over AUD 10,000,000 Hydrometallurgical Plant Beneficiation Plant Requirements Sulphuric Acid Plant Proven execution track record NPI Packages: Accommodation Village Highly specialized skills and equipment Borefield Drilling Availa
Slide 38: Contract Types – Mid Tier
30/03/2022 Contract Types – Mid Tier NPI Packages: Packages up to AUD 8,000,000 Information and Comms Technology Firewater Pump Packages Requirements Vehicle Washdown Packages Robust systems, policies and procedures in place Steel Frame Buildings Proven experience Modular Buildings Tempo
Slide 39: Contract Types - Minor
30/03/2022 Contract Types - Minor NPI Packages: Packages up to AUD 1,000,000 Nolans Bore – Drilling / Development Fencing Requirements Wastewater Treatment Plant (supply) Prior similar experience Waste Management Power Generator Available plant, equipment and labour Diesel refuelling pac
Slide 40: Other Supply Chain Opportunities
30/03/2022 Other Supply Chain Opportunities From small things, big things grow Major supply activities – outside the NT and Australian capabilities OEM – Local support will be required Local supply opportunities: PPE Temporary construction facilities and equipment Electrical, Communications and Inst
Slide 41: How to Get Involved
30/03/2022 How to Get Involved Register with ICN Gateway Expressions of interest put up on ICN to shortlist for contract packages with tendering direct Main contractors, who will be announced on ICN, will follow the same process for sub-contract packages Suppliers can register on ICN as well Also wo
Slide 42: Project Operations
30/03/2022 Project Operations (ASX:ARU) 42
Slide 43: Operations
30/03/2022 Operations Operations will run from the start of ore commissioning for 38 years or more Will include a mix of: Site and Alice Springs office activities Direct operation by Arafura Build-own-operate or Contract operations Supporting Contracts Suppliers Consultants (ASX:ARU) 43
Slide 44: Alice Springs Office
30/03/2022 Alice Springs Commercial Management Office Accounting Human Resources Payroll Travel and Site Access Management Procurement and Supply Buyers Contract Managers Logistics Management Community and Environment Community Liaison Environmental Scientists (ASX:ARU) 44
Slide 45: Contract Operations
30/03/2022 Contract Operations Contract Mining, including mining equipment supply and maintenance Contract Ore Haulage from Mine to Process Plant Power station and power generation (Build-Own-Operate) Laboratory (Build-Own-Operate) Village operations, catering and maintenance Logistics, with potenti
Slide 46: Supporting Contracts
30/03/2022 Supporting Contracts Labour hire Mobile equipment hire (cranes, EWPs, scaffolding etc.) Contract maintenance services – annual and bi-annual shutdowns, mill relining, minor shutdowns, landscaping, general buildings Workshop and rebuild services Sustaining capital works – RSF expansion, cr
Slide 47: ESS Village Contractor – Case Study
30/03/2022 ESS Village Contractor – Case Study MOU with ESS to operate our village during construction and operations also includes commitments to the following: Working with indigenous and local partner businesses Business incubation Local supply and support Staff training and development Get boots
Slide 48: Operations Employment, Education and Training
30/03/2022 Operations Employment, Education and Training Committed to develop local and indigenous direct and indirect employment opportunities to become the local ‘employer of choice’ Intergenerational career and employment opportunities through, training, apprenticeships, scholarships, sponsorship
Slide 49: Timeline for Operations Preparedness
30/03/2022 Timeline for Operations Preparedness Catalyst for commencing operations planning will be employment of a General Manager Nolans, anticipated after FID Will be responsible for: Operational readiness planning Workforce planning, skills and gap analysis Training, education and development pl
Slide 50: Industry Capability Network (ICN) Northern Territory
Industry Capability Network (ICN) Northern Territory
Slide 51: Nolans Project Industry Briefing
nolansproject.icn.org.au Arafura Resources | Nolans Project Industry Briefing
Slide 52: Nolans Project Industry Briefing
nolansproject.icn.org.au Arafura Resources | Nolans Project Industry Briefing
Slide 53: nolansproject.icn.org.au
nolansproject.icn.org.au The Nolan’s Project ICN Gateway page is the platform for pre-tender Expressions of Interest (EOI) collection Register for ‘General Updates’ to be notified of all new work packages or contract awards Express interest to be considered for tender opportunities Review work packa
Slide 54: nolansproject.icn.org.au
nolansproject.icn.org.au Submit EOI’s against relevant work packages providing supporting documents to conform to the requirements for Arafura’s assessment. Project examples should be tailored to the project and to the scope of work Contact ICN with any work package questions for assistance nolanspr
Slide 55: Nolans Project Industry Briefing
nolansproject.icn.org.au Arafura Resources | Nolans Project Industry Briefing
Slide 56: Key Points
Key Points Create a free ICN profile, or update your existing profile to demonstrate your full capabilities Register for ‘General Updates’ to be notified of all new work packages or contract awards Submit an individual EOI for each relevant work package Contact ICN for any assistance with the proces
Slide 57: ICN Northern Territory
ICN Northern Territory Phone: 08 8922 9422 Email: resources@icnnt.org.au nolansproject.icn.org.au
Slide 58: Closing Remarks and Questions
30/03/2022 Closing Remarks and Questions (ASX:ARU) 58
Slide 59: Closing Remarks
30/03/2022 Closing Plan for a on-line presentation in near future Remarks for those that couldn’t make it Register for updates through arultd.com or ICN gateway Everyone at Arafura is very excited to move Nolans in the next stage Short video presentation we have been showing to offtake partners foll
Slide 60: Contact Information
30/03/2022 Contact Information Level 6, 432 Murray St Perth WA 6000, Australia +61 8 6370 2800 arafura@arultd.com nolansproject@arultd.com www.arultd.com (ASX:ARU) 61