Hastings Technology Metals and Baotou Sky Rock Rare Earth New Material Co have signed a binding term sheet for the supply of rare earth monazite concentrate.
Baotou Sky Rock is a privately-owned Chinese high-tech enterprise that specialises in the production of rare earth metals and permanent magnet materials.
Under an integrated tolling and offtake arrangement, concentrate will come from the Yangibana project, before then being toll treated in China to produce separated rare earth oxides.
The agreement’s pricing structure applies to a minimum of 10,000 tonnes per annum of concentrate for a seven-year term commencing on the execution of the binding term sheet. It comes with an option to extend for another five years at Hastings’ election.
“We have identified the opportunity to utilise excess downstream rare earth processing capacity available in China by partnering with privately-owned rare earth processing and magnet manufacturers which are seeking to secure a long-term and steady supply of concentrate feedstock,” Hastings Technology Metals chief executive officer Paul Brown said.
“The integrated arrangement under the binding term sheet with Baotou Sky Rock will facilitate Hastings extracting greater value from our concentrate under a multi-stage toll treatment arrangement and combined with our optimised mine plan delivers a more attractive project.”
The agreement with Baotou Sky Rock supplements the existing offtake contract Hastings has with thyssenkrupp for two-thirds of annual production from Yangibana.
“The ability to secure this innovative tolling and offtake arrangement demonstrates the strong demand for the Yangibana project’s NdPr-rich concentrates and gives us confidence in the outlook,” Brown said.
Hastings is currently negotiating with other potential customers to commercialise remaining Yangibana project volumes.
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