Thyssenkrupp will be supplied 9000 tonnes per annum of mixed rare earth carbonate from Yangibana for the first five years of the operation, and 5000tpa for the second five-year period, or 33% of planned production between years 5-10.

 

Thyssenkrupp has offices in nearly nations around the work, and was described as part of the "biggest mill-independent materials distributor and service provider in the western world".

 

The 70,000t sales contract also grants Thyssenkrupp exclusive rights to market and distribute Hastings' Yangibana rare earths on a worldwide basis, except for certain excluded customers that Hastings has established relationships with.

 

Hastings also has offtake agreements to finalise with major German automotive supplier Schaeffler Technologies and Skyrock Baotou, and will also target some spot sales.

 

Hastings said if it eventually moves downstream to produce rare earth oxides the Thyssenkrupp contract has been designed to allow acceptance of rare earth oxides.

 

Yangibana, in Western Australia's Gascoyne's region, is aiming to become Australia's next rare earth operation, with Hastings is targeting the commencement of early earth works in the next few months.

 

Executive chairman Charles Lew said getting the German group to sign on was further evidence of the economic viability of Yangibana as the company seeks to square away its debt financing.

 

The A$517 million development is based on reserves of 12.2 million tonnes at 1.13% total rare earth oxides.

 

Hastings hopes to access a $200 million loan from the German government and $210 million from the Northern Australia Infrastructure Facility. It recently, easily raised $100 million in equity in an upsized raising. 

 

Payback is put at three years, but the Yangibana joint venture, which is shared with Mojito Resources, is yet to be fully explored and shows signs if resource growth.

 

First production is planned for 2023, ramping up to an annual 15,000tpa of MREC over 13 years, containing around 3400t of neodymium-praseodymium oxides that can be used in the growing battery space. 

 

Shares in the junior were up 7.5% to 21.5c, valuing it at $347.6 million.

 

The stock has traded between 5.1-27c over the past year.