Perth-based explorer Hastings Technology Metals (ASX:HAS) has executed a $210 million engineering, procurement, and construction (EPC) contract with GR Engineering Services (ASX:GNG) for works at the Yangibana Rare Earths Project in Western Australia.
Hastings, which has a market capitalisation of $156.53 million, reports the contract has no material departures from a binding term sheet that both parties signed in May 2023, including this $210 million contract.
The contract also includes a process guarantee which aligns with the current planned ramp-up of the beneficiation plant and is supported by all process testwork completed to date.
Under the contract, GR Engineering will design and construct the beneficiation plant, along with all associated infrastructure including engineering, manufacture, supply, installation, dry and wet commissioning, and testing over the facility for a period of less than 18 months.
Once completed, Hastings says the plant will have a feed capacity of 1.1 million tonnes per annum, and a rare earth concentrate output capacity of 37,000 tonnes per annum, with first concentrate planned for Q2 2025.
GR Engineering will continue under an early works contract until full mobilisation to site in Q4 2023, which is when Hastings expects all conditions precedent to be satisfied, including project funding as standard for an EPC contract.
Commenting on the EPC contract, Hastings Technology Metals Executive Chairman Charles Lew says: “The signing of the EPC contract with GR Engineering for the delivery of the beneficiation plant at Yangibana is another important milestone in our development plan for bringing this world-class project into production.
The fixed price contract and strong credentials of GR Engineering gives us a high-level of confidence in the delivery of this critical infrastructure ahead of first rare earth concentrate production in Q2 2025.”
“The signing of the EPC contract with GR Engineering for the delivery of the beneficiation plant at Yangibana is another important milestone in our development plan…”
Also commenting, GR Engineering Services Managing Director Tony Patrizi says the company is pleased to be working on this ‘world-class’ rare earths project in the Gascoyne region of Western Australia.
“The fact that Hastings has recognised the high-level of expertise and experience within the GRES process team and broader business is extremely satisfying. We look forward to engaging closely with the Hastings team to deliver safe and successful outcomes for this important project in the critical minerals sector.”
GR Engineering Services is an engineering consultant and contractor that specialises in providing ‘high-quality’ engineering design and construction services to the mining and mineral processing industries.
Hastings is a rare earths explorer aiming to become the world’s next neodymium and praseodymium concentrate producer.
The company’s flagship Yangibana Rare Earths Project lies in the Gascoyne and Pilbara regions of Western Australia being developed in 2 stages, with the first focused on constructing the mine and a beneficiation plant to produce 37,000 tonnes per annum of mixed rare earth concentrate.
This will be followed by the construction of a hydrometallurgical plant in Onslow, which will have the capacity to process 15,000 tonnes per annum of mixed rare earth carbonate.
Along with Yangibana, Hastings also owns and operates the Brockman Project near Halls Creek in the Kimberley region of Western Australia. As of 30 June 2023, the company had $102 million cash and cash equivalents at hand according to its latest quarterly report published on 17 July 2023.
Write to Harry Mulholland at Mining.com.au
Images: Hastings Technology Metals Ltd