Iluka Resources to process Lindian Resources’ | Australian Markets
Iluka Resources has struck a deal to feed materials from an African mine into its taxpayer-funded uncommon earths refinery close to Jurien Bay.
ASX-listed Lindian Resources is set to provide Iluka with 6000 tonnes of monazite focus a 12 months from its future Kangankunde mine in Malawi.
The 15-year offtake settlement will probably be linked to a price flooring set by the Australian Government — a potential coverage which was flagged by Federal Resources Minister Madeleine King on Monday.
The actual particulars of the potential price flooring are but to be floated.
The Trump Administration final month set a $US110 per kilogram minimal for uncommon earth parts neodymium and praseodymium in its offtake deal with MP Materials.
Iluka will process the monazite focus by means of its Eneabba refinery, which has thus far acquired $1.65 billion in taxpayer funding and might process up 65,000 tonnes of feedstock a 12 months as soon as constructed.
Eneabba is set to be constructed and commissioned in 2027, whereas Kangankunde is scheduled to be operational subsequent 12 months. Iluka is loaning Perth-based Lindian $US20 million ($31m) to help fund Kangankunde’s construct.
Iluka has its own stockpiles to feed Eneabba, in addition to offtake lined up with Northern Minerals for the coveted ‘heavy’ subset of uncommon earth parts from its Brownes Range project close to Halls Creek.
“Against a backdrop of heightened emphasis on diversifying the supply of rare earths globally, this is an example of Iluka catalysing a new mine into production as its Australian refining customer,” Iluka managing director Tom O’Leary stated.
“Construction of the refinery is progressing well, with concrete works advancing and equipment now arriving on site.
“In parallel, we are in active discussions with several potential feedstock suppliers.
“The Kangankunde deposit has the potential to support a large, low-cost and simple mining operation. I am delighted that our discussions have culminated in a binding agreement, including the potential to further expand feedstock supply in the future.”
Lindian govt chairman Rob Martin stated the Iluka deal was a defining second for his company and established it as a long-term and vital participant within the international uncommon earths provide chain.
Shares in Lindian surged more than 35 per cent in early trade on Wednesday.
Meanwhile, shares in Arafura Rare Earths sunk 5 per cent, with its traders seemingly hoping Iluka’s latest offtake deal would have been for feedstock from the Nolans project within the Northern Territory.
Lindian, which has a market capitalisation of about $160m, has confronted security points at its Malawian project.
In April, two Chinese nationals had been charged with felony trespass after being detained at Kangankunde.
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