Arafura has engaged the Australian Nuclear Science and Technology Organisation (ANSTO) to determine the processing route for rare earths production. ANSTO is a leader in rare earth metallurgy and nuclear science technology in Australia.

Arafura has also engaged Bateman Chemical Technologies to determine the processing route for phosphoric acid and other by-products production. Bateman is a leading designer/builder of fertiliser/phosphoric acid plants.

Test work has returned consistently encouraging results from the metallurgical programme to date. The ANSTO results indicated that a three step process provides the best approach for the recovery of rare earths, phosphate and uranium.

The Bateman results have identified commercial production of technical grade phosphoric acid may be possible. Further value to the project has been identified in the production of calcium chloride.

The development of the Nolans phosphate hosted - rare earths project has progressed to budget and projected schedule when successfully completing Stage II of the development work at ANSTO. Stage III, the rare earths extraction stage, was delayed 3 months due to problems converting conventional monazite technology to suit Nolans ore. The delay has resulted in the pilot plant now commencing in Q1 2008.