Arafura Resources Limited
(ASX:ARU) says it hopes to cut capital expenditure by as much as $1 billion at its Nolans project.
The rare earths company says the move comes amid a challenging environment with lower rare earths prices, increasing business costs and depressed capital markets.
Arafura says a review of its Nolans project has found significant savings can be achieved by simplifying the transport and logistics components of the project.
As part of the plan, the company hopes to relocate its chemical processing plant from Whyalla in South Australia to the Nolans Bore Mine in the Northern Territory.
The company says its retaining its interest in the Whyalla site, pending a final decision on the extent of the plant relocation.
Arafura reported a net loss of $1.3 million for the first half of fiscal 2013.
