Hastings Technology Metals Ltd (ASX:HAS) has executed a binding offtake contract with thyssenkrupp Materials Trading GmbH (TK), for the supply of high-grade mixed rare earth carbonate (MREC) from Yangibana Rare Earths Project in the Gascoyne region of Western Australia.
TK is a well-established and internationally recognised German raw materials trading business with offices in 16 countries and core capabilities in materials trading that embrace complex logistic services for raw and finished materials along with supply chain knowledge and dependability.
Hastings will supply 9,000 tonnes annually of MREC for the first five years from its rare earth mine and processing facilities and for the subsequent five years, 5,000 tonnes.
Over a 10-year period, total MREC volume committed by TK amounts to 70,000 tonnes, pricing of which is referenced to Asian Metals average 90-days ex-works price or at an agreed price between the parties.
“Highly significant”
Hastings executive chairman Charles Lew said: “This offtake contract with a leading and respected global player like TK is highly significant, demonstrating the commercial and technical strengths of the Yangibana rare earth project, primarily its high NdPr:TREO ratio of up to 52%.
“It further strengthens the economic viability of Yangibana thereby enabling Hastings to progress on the debt financing workstream with the objective of securing credit approvals in the coming months.”
Intention to start by late 2023
Lew said: “Hastings is targeting the commencement of early earthworks on-site in Yangibana in the next few months as our intention is to begin production by late 2023.
“This timing coincides with the strong increase in demand for magnet rare earths expected over the next five to 10 years driven by the EV revolution.
“The processing plants are designed to produce 15,000 tonnes of MREC per annum (when separated is equivalent to 3,400 tonnes of NdPr oxides), which Hastings is expected to deliver to high-quality partners such as thyssenkrupp under long-term offtake contracts with the balance of output reserved for other offtake customers or the spot market.”
“Advanced stage of growth”
“Our company is entering an advanced stage of its growth cycle when we commence full-scale construction of the Yangibana rare earth project.
“We will continue to update shareholders and stakeholders of our progress.”