The Agreement outlines the framework for both parties to negotiate a binding offtake agreement and pursue further downstream technical and commercial collaboration.
HIGHLIGHTS
-
- In Yangibana Stage 1, Hastings would supply up to 25,000 tonnes per annum of concentrate from Q1 CY2025 for Neo's downstream processing facilities across
- The offtake arrangement for concentrate from the
- Silmet plans to produce separated rare earth oxides for Neo's sintered rare earth permanent magnet manufacturing plant under development in nearby Narva,
- The contemplated offtake arrangement could cover up to 70% of Stage 1 and 2 Yangibana production for an initial period of 10 years
- The Agreement also provides for cooperation in the areas of evaluating joint downstream processing opportunities, technical, and commercial collaboration
Hastings Executive Chair, Mr
"The signing of this Heads of Agreement builds on Hastings' strategic investment in Neo Performance Materials, representing a significant step forward in our vision to advance synergies between both companies with a view to creating a fully integrated mine-to-magnet supply chain. We share this vision with our partner Wyloo Metals, who has been very supportive in our mine-to-magnet strategy as we see a unique opportunity to be a major player in building a European centric magnet supply chain during this decade."
"This agreement with Neo represents the first step in a strategic partnership that will establish Hastings as a reliable supplier of rare earth feedstock to the European permanent magnets industry, and further strengthens the staged development strategy for the
Neo Performance Materials CEO,
"This initiative supports Neo's strategic efforts to continue to globally diversify our sources of rare earth feedstock and to provide our customers with maximum supply chain optionality. The Yangibana resource is an attractive potential source of magnetic rare earths--NdPr in particular--and it could contribute to meeting the feedstock targets of our planned
Headquartered in
Based in
The rare earth concentrate feedstock from Yangibana would assist in meeting Neo's growing requirements for its existing and new facilities. This includes the only industrial-scale, commercially operating rare earth separation facility in the Western hemisphere in Sillamae,
This strategic partnership builds on Hastings' 19.9% investment in Neo and the vertical integration strategy of both companies to supply magnets to the European electric vehicle traction motor market and other electrification markets including wind turbines, robotics and other advanced technologies.
KEY TERMS - HEADS OF AGREEMENT
The Agreement provides a framework for both parties to negotiate a binding offtake agreement for the supply of up to 70% (approximately 25,000 tonnes) of the annual concentrate production from Stage 1 of Yangibana. The 10-year initial term would commence with the production of Stage 1 concentrate (from Q1 CY2025) that would be processed into MREC by a third party. It would continue until such a time as MREC is produced by Hastings at Stage 2 of Yangibana, when the offtake agreement is expected to evolve to supply up to 10,000 tonnes per annum of MREC.
Other key terms of the Agreement are:
- Prior to the commencement of operations at Hastings' planned Stage 2 hydrometallurgical plant in Onslow WA, Neo and Hastings will cooperate to arrange processing of the Stage 1 concentrate into MREC prior to delivery to Neo's facilities;
- Pricing for the concentrate would be determined using a mutually agreed formula based on the Neodymium (Nd), Praseodymium (Pr), Dysprosium (Dy) and Terbium (Tb) content in basket value, referencing an index publishing a representative Nd, Pr, Dy and Tb price with regards to the Total Rare Earth Oxide (TREO) content of the delivered concentrate; and
- Toll treatment and third-party processing fees for the Stage 1 concentrate remain to be negotiated and will be applied as a set off against the payment to Hastings.
Hastings and Neo will work towards executing a binding offtake agreement by Q1 2024.
In addition, both parties have also committed to cooperating to further evaluate joint downstream processing opportunities including the production of oxides, metals and alloys. Hastings and Neo expect to complete future studies to determine whether the end product demand justifies future production increases from the Yangibana mine.
About
Neodymium and praseodymium are vital components in the manufacture of permanent magnets which is used in a wide and expanding range of advanced and high-tech products including electric vehicles, wind turbines, robotics, medical applications and others. Hastings aims to become the next significant producer of neodymium and praseodymium outside of
Hastings holds 100% interest in the most significant deposits within the overall project, and 70% interest in additional deposits that will be developed at a later date, all held under Mining Leases. Numerous prospects have been identified warranting detailed exploration to further extend the life of the project.
The Brockman deposit, near
The Company is also progressing a
Hastings aims to capitalise on the strong demand for critical rare earths created by the expanding demand for new technology products.
Contact:
Executive Chairman
+65 6220 9220
Chief Executive Officer (Interim)
+61 8 6117 8621
SVP, Corporate Development and Capital Markets
+1 (416) 962-3300
a.mahdavi@neomaterials.com
FOR MEDIA QUERIES:
Communications Manager
+61 405 183 237
stephanie.vanicek@hastingstechmetals.com
Director, Corporate Communications
+1 (303) 503-6203
j.sims@neomaterials.com
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