Hastings Technology Metals Ltd (ASX:HAS) has seen its share price rise more than 3% as it told investors in its annual report that the Yangibana rare earths and niobium project in Western Australia was moving closer to production, and had reduced its capital costs by $56 million.
The project’s new capex is now $474 million, including $154 million already spent on mine site infrastructure.
According to the annual report to shareholders, Yangibana – located in WA’s upper Gascoyne region – is now moving into the stage of construction of a beneficiation plant, with the first concentrate to be produced by 2026.
Construction of the project in general was 32% complete as on June 30, with much of this dedicated to non-process infrastructure and long-lead equipment for the plant, and deliveries of the latter continued, including flotation cells and storage silos.
Other aspects of construction during the period included the building of a 298-bed accommodation camp, a 1.8 kilometre airstrip, four water bores, telecommunications towers and over 20 kilometres of site access roads.
In its report, Hastings claimed that expenses going forward were expected to be lower, since payments had already been made for long lead equipment packages.
Other achievements included the signing of a $210 million engineering, procurement and construction (EPC) contract with GR Engineering Services in August, a site visit for investors, and the release of a maiden niobium resource at Yangibana, which came in at 6.7 million tonnes at 2,305 parts per million (ppm) for 15,501 tonnes Nb2O5 (niobium pentoxide).
The total reserves for the project – reported in January 2023 – were 20.93 million tonnes at 0.90% TREO (total rare earth oxides) for 188.135 tonnes.
Crucially in July, Hastings also announced that producer of rare earths permanent magnets JL Mag Rare-Earth Co – through a Hong Kong based subsidiary – had become a strategic investor, taking on 9.8% interest in the company.
Hastings chairman Charles Lew said the company had moved closer to its end goals with Yangibana throughout the year.
“Throughout this period, we have made considerable strides in advancing our flagship Yangibana Rare Earths and Niobium Project, bringing us ever closer to production,” he said.
“Along the way, we have made some exciting discoveries, forged key partnerships, driven down capital costs and laid a strong foundation for the future.
“We also launched our new Vision and Values where our people developed our culture
strategy, outlining behaviours critical towards achieving our vision to become Australia’s next rare earth producer.”
At 13:40 AEST, Hastings’ share price was 29 cents – a rise of 3.57% since the market opened.
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