Arafura Resources says the “era” of low rare earths prices has passed, with the price of one kilo of rare earths quoted by UK-based Metal Pages up to $US120.55 or $US3375 ($A3404.96) a tonne of in-situ ore.
In early trade, Arafura stock was up 1.5 cents at $1.14.
The rare earths company says it remains on track to deliver first production in 2013 of 20,000 tonnes of rare earth oxides from its Nolans project 135km north-west of Alice Springs in Northern Territory.
Advertisement: Story continues below
“It is becoming clearer that the era of low priced rare earths is behind us,” chief executive Steve Ward said in a statement.
“We believe the current and forecast market dynamics of supplies remaining tight create a wonderful opportunity for Arafura.”
China produces 97 per cent of the world’s rare earths and has reduced export quotas, adding to tight supply conditions outside the country.
Mr Ward said Arafura was one of only a few potential rare earth producers that could meet growing non-Chinese demand in the short to medium term.