March 31 (Reuters) - Australia's Tamboran Resources Corporation TBN.AX will supply gas from its Beetaloo basin assets in the Northern Territory to local rare earths miner Arafura's ARU.AX Nolans project for up to 10 years, the companies said on Monday.
Tamboran has signed a non-binding letter of intent with a unit of Arafura, under which the former intends to supply 18 to 25 terajoules per day (TJ/d) of natural gas. Arafura would potentially support the development of the Beetaloo basin acreage.
Arafura's earlier gas supply agreement with the Mereenie gas field joint venture, which was signed in February last year, was set to lapse on March 31.
Arafura's Nolans project produces Neodymium-Praseodymium, a blend of two rare earth metals of neodymium and praseodymium which is used to make powerful magnets for modern technologies.
The company has existing rare earths oxide deals with automakers such as Hyundai 011760.KS and Kia 000270.KS, and with renewable energy major Siemens Gamesa RE.
(Reporting by Nikita Maria Jino in Bengaluru; Editing by Krishna Chandra Eluri)
((Nikita.Jino@thomsonreuters.com;))
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.