Australia's Hastings Technology inks offtake deal with Chinese rare-earths producer (updated)

Hastings Technology Metals

16/02/2024 03:14

(Updates with share moves in paragraph 2, deal details
throughout and background in paragraph 3, adds executive
comments in paragraph 5)
       Feb 16 (Reuters) - Australia's Hastings Technology
Metals  HAS.AX  said on Friday it will supply mixed rare-earths
carbonate from its Yangibana project in Western Australia to
Chinese producer Baotou Sky Rock for a minimum period of seven
years.
    Shares of the Australian rare-earths miner advanced as much
as 16.1%, their biggest intraday jump since July 4, 2023.
    Hastings, which is backed by Fortescue  FMG.AX  Chairman
Andrew Forrest, will supply a minimum of 10,000 tons per annum
of concentrate for an initial seven years, with the offtake deal
having an option to extend it for another five.
        Hastings is developing a rare-earths mine and processing
plant at Yangibana in the Gascoyne Region of Western Australia. 
        "Negotiations are ongoing with other potential customers
to conclude similar offtake arrangements for the remaining
Yangibana Project volumes," Hastings told investors in a
statement on Friday.
        The company said the offtake deal will allow it to
realise higher prices for its concentrate and would
significantly improve the "economics of the Yangibana Project."
        Hastings had previously signed an offtake agreement in
2018 with the privately-owned Baotou, which lapsed last year.
    The Australian miner also has existing supply agreements
with European chemical giant Solvay  SOLB.BR  and owns a 21.15%
stake in Canada's Neo Performance Materials  NEO.TO .
    In 2022, Forrest's Wyloo Metals made an investment through a
note issue to fund Hastings' stake buy in Toronto-listed magnet
producer Neo. 
        
  
           
  
      
  

 (Reporting by Shivangi Lahiri in Bengaluru; Editing by Sherry
Jacob-Phillips)
 ((Shivangi.Lahiri@thomsonreuters.com;))