- Hastings Technology Metals (HAS) has executed a binding offtake contract with Thyssenkrupp (TK) for high-grade mixed rare earth carbonate (MREC) from the company’s Yangibana Rare Earths Project in Western Australia
- The contract requires Hastings to supply 9000 tonnes per year of MREC for the first five years and 5000 per year for the subsequent five years from its rare earth mine and processing facilities, totalling 70,000 tonnes over a ten-year period
- The contract also grants TK exclusive right to market and distribute the company’s MREC on a worldwide basis
- The company says contract is a major milestone for Hastings to supply its MREC under long-term offtake arrangements with highly respected customers in Europe and Asia
- Hastings is up 5 per cent, trading at 21 cents
Hastings Technology Metals (HAS) has executed a binding offtake contract with Thyssenkrupp Materials Trading for high-grade mixed rare earth carbonate (MREC).
The MREC will be sourced from the company’s Yangibana Rare Earths Project in the Gascoyne region of Western Australia.
Thyssenkrupp (TK) is an internationally recognised German raw materials trading business.
The contract with TK requires Hastings to supply 9000 tonnes per year of MREC for the first five years, and 5000 per year for the subsequent five years from its rare earth mine and processing facilities, totalling 70,000 tonnes over a ten-year period.
The contract also grants TK exclusive right to market and distribute the company’s MREC on a worldwide basis, with the exception for certain excluded customers that Hasting has established relationships with.
The contract is a major milestone for Hastings to supply its MREC under long-term offtake arrangements with highly respected customers in Europe and Asia, while preserving its ability to also supply uncommitted volume into the spot market.
“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,” said Charles Lew, Hastings Executive Chairman.
“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.”
“Hastings is targeting the commencement of early earth works on site in Yangibana in the next few months as our intention is to commence production by late 2023. This timing coincides with the strong increase in demand for magnet rare earths expected over the next 5 to 10 years driven by the EV [electric vehicle] revolution”.
Hastings is up 5 per cent, trading at 21 cents at 11:35 am AEST.