Australia’s Cue signs gas deal for Arafura's NdPr mine

Australian independent Cue Energy has signed a gas supply agreement (GSA) with domestic developer Arafura Rare Earths for up to 2.06PJ (55mn m³) for its Arafura Nolans project in the Northern Territory (NT).

Cue's contribution will be aggregated with gas from other Mereenie field joint-venture partners to supply up to 27.4PJ of gas to Arafura over an initial three and up to five years, Cue said on 13 February. A unit of Australia's Macquarie Bank owns 50pc of Mereenie in the NT's Amadeus basin, with 17.5pc held by upstream firm New Zealand Oil and Gas, Australian independent Central Petroleum 25pc and the remaining 7.5pc owned by Cue.

The GSA starts in 2026 for a three-year term, with a further two-year extension subject to gas being available, Cue said. The GSA is for firm gas supplies with take-or-pay provisions and a price that escalates with inflation.

Arafura last year agreed a deal with German industrial manufacturer Siemens for supply of neodymium and praseodymium (NdPr) totalling an initial 200 t/yr from 2026, following a similar offtake agreement struck with South Korean auto manufacturer Hyundai in 2022.

Arafura aims to produce its first NdPr oxide in 2025 with a 4,480 t/yr goal by 2028.

Cue last month reported a slight dip in production at its Indonesia, Australia and New Zealand upstream assets in the final quarter of 2023.

By Tom Major