Rare earths producer Arafura Resources Ltd (ASX:ARU) has stated the current and forecast market dynamics of tight rare earth supplies presents opportunities for the company.
Arafura says that it is well placed for growth despite uncertain global financial markets and the tragic events in Japan, the country being a major rare earths consumer.
China currently produces around 97 per cent of the world’s rare earths and has a program in place to reduce export quotas.
CEO and managing director Dr Steve Ward says Arafura is well positioned to meet non-Chinese demand in the short to medium term.
Dr Ward has confirmed Arafura is on track to deliver first production in 2013 of an annualised 20,000 tonnes of rare earth oxides from its Nolans Project in Whyalla in South Australia
At the end of last year Arafura raised $90 million to advance the Nolans Project and just last week announced that it had awarded an engineering contract to advance the Nolans bankable feasibility study.
The bankable feasibility study is due to be completed this year.
In the six months to 31 December 2010, Arafura Resources posted a net loss of $4.7 million.
