Northern Minerals has signed an offtake agreement with thyssenkrupp for 100 per cent of offtake from the Browns Range Pilot Plant Project.
|Northern Minerals carbonate with ore and magnet|
The new offtake agreement replaces the offtake agreement with Lianyugang Zeyu New Materials Sales Co, which has been terminated.
The new agreement with thyssenkrupp is for the purchase of all heavy rare earth carbonate from the pilot plant project, with the flexibility for the Company to supply heavy rare earths as separated products in the future. The agreement with thyssenkrupp includes an intention for the parties to work together on implementing separating technologies at Browns Range and to work together in potential future expansions of the project.
The offtake agreement will commence immediately, with all current stockpiled product and future production included in the agreement.
Northern Minerals’ Managing Director and CEO, George Bauk, says that the new offtake agreement with a global player such as thyssenkrupp is “a significant endorsement of Browns Range and the Company”.
“The continued shift of new car sales to electric vehicles is gaining traction, with all major carmakers introducing EV variants of existing models over the coming years.
“With this shift, both car and component makers are accelerating plans to invest further down the production chain in order to secure surety of supply.
“Importantly for Northern Minerals, the new offtake agreement doesn’t include any price caps, giving the Company full exposure to increasing Dysprosium and Terbium prices, which are up 60% and 35% respectively over the year to date,” said Mr Bauk.
Wolfgang Schnittker, CEO of thyssenkrupp Materials Trading acknowledged that Northern Minerals is one of the few suppliers of rare earths outside China.
“We are really looking forward to a successful collaboration between the companies,” said Mr Schnittker.
“As the exclusive marketer of these high-quality products we have the opportunity to strengthen our customer relationships long-term and expand our positioning in this field.”