Australia’s next rare earths producer Hastings Technology Metals Limited (ASX: HAS) (Hastings or the Company) is pleased to announce that it has executed a binding offtake contract with thyssenkrupp Materials Trading GmbH (TK), for high-grade mixed rare earth carbonate (MREC) from the Company’s Yangibana Rare Earths Project (Yangibana) in the Gascoyne region of Western Australia.
Hastings announces signing of a major offtake contract for the supply of its high grade product from its Yangibana Rare Earths Project in Western Australia to thyssenkrupp Materials Trading GmbH.
Hastings will supply 9,000 tonnes per annum of its Mixed Rare Earth Carbonate (MREC) for the first 5 years and 5,000 tonnes per annum for the second 5 years, totalling 70,000 tonnes over a 10-year period.
The committed offtake volume from thyssenkrupp represents 60% of Hastings annual Yangibana production volume for the first 5 years and 33% for the second 5 years.
The contract grants thyssenkrupp exclusive rights to market and distribute Hastings’ Yangibana highquality rare earths product on a worldwide basis except for certain excluded customers of Hastings.
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. thyssenkrupp Materials Services, the holding company of TK, is the biggest mill-independent materials distributor and service provider in the western world with operations in more than 480 locations in nearly 40 countries.
The contract with TK requires Hastings to supply 9,000 tonnes per annum of MREC (equivalent to 60% of Yangibana’s annual production) for the first five years; and for the subsequent five years, 5,000 tonnes per annum of MREC (equivalent to 33% of annual production) from its rare earth mine and processing facilities. Over a 10- year period, total MREC volume committed by TK amounts to 70,000 tonnes. Pricing for the MREC is referenced to Asian Metals average 90-days Ex Works price or at an agreed price between the parties.