PERTH-based Arafura Resources has awarded Amsterdam-headquartered Bateman Litwin a $US22 million ($A23.7 million) contract to manage a definitive feasibility study at Arafura’s Nolans rare earths project in the Northern Territory.

In mid-October last year, a pre-feasibility study valued the Nolans project at $A1.1 billion, with an estimated capital cost of $750 million.

The PFS projected a 20 year mine life at Nolans, with annual revenues of $410 million.

The project has current inferred and indicated resources of 18.6 million tonnes at 3.1% rare earths, 14% phosphate and 0.47 pounds per tonne uranium.

“The appointment of Bateman Litwin, one of the world’s leading chemical technologies, solvent extraction and engineering solutions experts to head up our feasibility study into the Nolans rare earths project is the next step in Arafura’s plans to be in production and processing by 2011,” Arafura managing director Alistair Stephens said.

Potential future production at Nolans is estimated at 20,000t of rare earths and 150,000t of phosphoric acid.

A 20,000 metre resource definition drilling program was recently completed, which Arafura said it hopes will expand the resource base and production.

Arafura shares closed the day down 1c at 79c.