Arafura Signs Binding 850tpa NdPr Oxide Offtake

Arafura (ASX:ARU) Rare Earths converted a binding term sheet signed in May into a binding offtake agreement with a global raw materials trading company, increasing the contracted NdPr oxide volume from the term sheet.

The agreement covers annual volume ramping up to 850tpa of NdPr oxide at nameplate production, with associated heavy rare earths, up from 500tpa in the binding term sheet announced on 13 May 2026. The term is five years with a two-year extension option by mutual agreement. Pricing is in USD and based on a global seaborne index, such as the Benchmark Minerals Intelligence indices or S&P's Global Platts North America pricing index. Arafura says the trader has been tapped under the U.S. government's Project Vault initiative, generates approximately US$10 billion in annual revenue and has over 20 global offices. The company says it remains in offtake discussions with other parties and will no longer disclose counterparty identities unless the identity itself is material.

The agreement is subject to customary conditions precedent, and the counterparty is not named. Volumes depend on reaching nameplate production, and the release does not state a start date or contract value.