Hastings Technology Metals has secured a non-binding letter of support of up to $100 million for its Yangibana rare earths project in WA.
Export Finance Australia (EFA) has indicated its intention to fund the project, subject to board approval and due diligence.
The $100 million pledge builds on an existing $220 million commitment by Northern Australia Infrastructure Facility, constituting the bulk of Hastings’ $400 million debt funding goal.
The capital raise will go to Hastings’ flagship Yangibana project, located in the Gascoyne and Pilbara regions of WA. Yangibana contains one of the most highly valued neodymium and praseodymium concentrate (NdPr) deposits of the world, with a ratio of up to 52 per cent.
NdPr is a vital component in the manufacture of magnets used in advanced technology products ranging from electric vehicles to wind turbines, robotics, medical applications, digital devices, and more.
Hastings commenced a detailed cost, schedule and delivery structure review to establish a realistic capital cost, as well as scheduling targets within the overall project planning. When this process is completed, Hastings will provide an update on the required final funding solution.
“Hastings is pleased to have received EFA’s letter of support towards the Yangibana rare earths project,” Hasting’s chief executive officer Alwyn Vorster said.
“Hastings will continue the construction of the Yangibana rare earths project to deliver first product to market before the end of 2025.”
In October last year, Hastings entered into a binding off-take agreement with France-based Solvay for the supply of rare earths from the Yangibana project.
Hastings executive chairman Charles Lew said the agreement set out the basis of a long-term partnership with Solvay for its downstream mine-to-magnet strategy, which was in line with the company’s European-centric business model.