Hastings Technology Metals to supply rare earths to Canada's Neo Performance (updated)

Neo Performance Materials

13/06/2023 24:39

(Adds details about the agreement in paragraphs 2,4 and 5)
       June 13 (Reuters) - Australia's rare earth developer
Hastings Technology Metals  HAS.AX  said on Tuesday it signed a
non-binding agreement with Canada's Neo Performance Materials
 NEO.TO  to supply rare earth concentrate from its Yangibana
project in Western Australia.
    Hastings said it would supply up to 25,000 tonnes per annum
of concentrate for Neo's downstream processing facilities across
Europe and Asia from the first quarter of 2025. The company did
not provide financial details for the deal.  
    The potential offtake arrangement could cover up to 70% of
Stages one and two of Yangibana production, which has an
estimated development cost of A$948 million ($640.28 million),
for an initial period of 10 years, Hastings added. 
    Hastings last month hiked its cost estimate for the project
by 40% from a 2020/2021 estimate.  
    The Perth-based company said the collaboration would provide
an additional source of feedstock for Neo's Silmet, a rare earth
separation facility in Estonia.
    The deal will help Neo produce rare earth oxides to supply
to European electric vehicle and renewable energy markets.
    

($1 = 1.4806 Australian dollars)
    

 (Reporting by Ayushman Ojha in Bengaluru and Melanie Burton in
Melbourne; Editing by Krishna Chandra Eluri)
 ((Ayushman.Ojha@thomsonreuters.com;))