Iluka Resources signs 18-year supply deal with VHM
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The news: Iluka Resources has signed a binding long-term agreement with critical minerals developer WHM to secure all planned rare earths concentrate output from its Goschen operations for an initial 18-year term.
The context: Under the agreement, VHM will supply Iluka with 146,000 tonnes of rare earths concentrate, consisting of 86,000 tonnes of total rare earths oxides.
The miner stated that this equates to approximately 4,900 tonnes per annum of rare earths oxides, serving as a complimentary feedstock for Iluka’s Eneabba refinery. The refinery project is currently more than 50% complete and scheduled for commissioning in mid-2027.
Iluka will also provide a $40 million secured convertible note facility to VHM structured in two tranches, comprising an initial $10 million followed by $30 million tranche upon the completion of a final investment decision.
What they said: “VHM has environmental approvals for Goschen in place and has received letters of funding interest from both the Australian and US governments,” Iluka managing director Tom O’Leary said.
“Our agreement reflects Iluka’s focus on securing suitable, advanced third party feedstocks for Eneabba, in addition to progressing those in our own portfolio in parallel,” he added.
The source: ASX
