Hastings Technology Metals Ltd has signed its third Memorandum of Understanding (MoU) with Qiandong Rare Earth Group (GQD). Under the MoU the parties have outlined their intent to enter into a binding commercial offtake agreement for the sale by Hastings and purchase by GQD of Mixed Rare Earth Carbonate (MREC), which will be produced from Yangibana, Western Australia. The framework for the commercial offtake agreement is set out in the MoU, and the final terms and conditions will be formalised in a contract.
The Parties have undertaken to negotiate in good faith to reach agreement for a commercial offtake contract within 12 months from the date of the MoU. Pricing for the MREC will be based on a formula taking into account prevailing market prices prior to shipment.
Charles Lew, Hastings Executive Chairman, said: “This third MOU for an offtake agreement with GQD provides confidence that a strong demand market exists for the Company’s high quality NdPr product. Prices for NdPr have increased by approximately 85% in 2017. Our production samples from the pilot test work earlier in the year contained over 40% NdPr of Total REOs.
The news announcement over the weekend of China’s plans to set a deadline for the ban of fossil fuel vehicles will accelerate the move towards electric vehicles. This follows similar announcement from France and the UK to ban fossil fuel powered cars. The trend towards the electrification of transportation will lead to an increase in the demand for NdPr through the next decade and beyond, and Hastings will be a new source of NdPr to the market.”