Iluka signs long-term rare earth concentrate supply deal with VHM
Key points
- Iluka to receive 146kt of rare earths concentrate over 18 years
- VHM to supply ~8,320tpa of rare earth concentrate
- Iluka to provide $40 million in funding for Goschen project
Full summary
Iluka Resources Limited has entered into a long-term supply agreement with VHM Limited for the supply of rare earth concentrate from the Goschen deposit in Victoria. The agreement covers 146 kilotonnes of rare earth concentrate over 18 years, providing Iluka with complementary feedstock for its Eneabba refinery. The concentrate will contain approximately 86 kilotonnes of rare earth oxides. The supply is expected to average around 8,320 tonnes per annum. Iluka will also provide VHM with a $40 million convertible note to support the Goschen project's development.
Guidance
Iluka to supply 8,320tpa of rare earth concentrate over 18 years
Outlook
Iluka anticipates VHM bringing Goschen into production, reinforcing the longevity and flexibility of its rare earths business.
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