AUSTRALIAN rare earths explorer Arafura Resources has appointed an engineering study manager for Whyalla processing plant.

Chief executive Dr Steve Ward said the appointment of AMEC Minproc, with 30 years and 400 major studies in its experience, was "a further major milestone" in Arafura's progress this year.

AMEC Minproc, a first tier engineering procurement and construction manager, will oversee the study to advance the Nolans Project bankable feasibility study (BFS), working on engineering and cost estimates for project finance.

"The successful capital raising last year allows Arafura to continue its program to complete the BFS in 2011 and then, subject to securing project finance, advance to production of Rare Earth Oxides in 2013.

The company aims to build a $1 billion mineral processing plant on existing OneSteel land at Whyalla on the Eyre Peninsula from next year from ore mined from its Nolans Project in the Nothern Territory.