Hastings Technologies Metals signed a 7-year tolling and offtake agreement with Baotou Sky Rock for 10.0ktpy rare earth concentrate (grading 27% REO) from Yangibana.

The deal between Australian-based Hastings and Chinese-owned Baotou Sky Rock will commence upon commercial production of concentrates being achieved at the Yangibana project, scheduled for 2026.  It is unclear if the agreement with Baotou Sky Rock will impact Hastings' longer-term plans to construct a hydrometallurgical processing facility in Australia.  Hastings had previously agreed terms with Baotou Sky Rock for an offtake agreement in 2018, though the period of validity for the initial contract lapsed in November 2023.       

The offtake with Baotou Sky Rock is integrated with Hastings' existing committed offtake agreement with Thyssenkrupp Materials Trading (TMT).  TMT will be supplied with mixed rare earth carbonate (MREC) toll processed by Baotou Sky Rock under the new agreement, with TMTs offtake volumes totalling 9.0ktpy MREC for the initial 5-year of operation, falling to 5.0ktpy for the subsequent 5-year period. Hastings also holds a non-binding agreement with Solvay, signed in 2022, to supply an initial 2.5ktpy MREC to Solvay’s La Rochelle facility in France, which could be supplied via the Baotou Sky Rock agreement if terms are acceptable to both parties.   

Overall the off-boarding of monazite cracking and leaching to Baotou Sky Rock derisks the Yangibana project, reducing the upfront capital requirements for MREC production, securing a customer for initial production, and allowing the fulfilment of existing offtake agreements.  The agreement with Baotou Sky Rock could, however, form a barrier to further offtakes being signed with some companies, which are focussed on forming China-independent supply chains for rare earth products.