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    • Delayed Prices (USD) - Last Updated 06-12-2021
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    Vital Metals secures 50% increase to rare earths offtake agreement

    Vital Metals (ASX: VML) has secured a 50% volume increase to its offtake agreement with Norway-based REEtec, accounting for 75% of total capacity at Vital’s expanded Saskatoon rare earth extraction plant.

    Under the amended agreement, Vital will supply rare earth carbonate product to REEtec containing a minimum of 750t per year Neodymium/Praseodymium (NdPr) over five years (total 3,750t NdPr), contained within 2,000t per year total rare earth oxides (TREO), with a maximum of 25% Cerium.

    VML says that the amended agreement extends Vital’s product sales to REEtec through to 2028, with an option for an additional expanded 10-year long term supply agreement to provide up to 2,500t NdPr per year contained within ~6,800 tonnes TREO. In addition, the contract volumes will now be defined by quantities of NdPr which Vital will supply to REEtec under an amended agreement.

    This increase will result in the expansion of our Saskatoon plant to double capacity by the end of 2023 with REEtec taking 75% of the plant capacity from that time”

    Addressing the news, Vital Metals Managing Director Geoff Atkins said: “This 50% increase in product to be sold to REEtec represents a vote of confidence in Vital Metals’ ability to guarantee feedstock to the European rare earths supply chain. This increase will result in the expansion of our Saskatoon plant to double capacity by the end of 2023 with REEtec taking 75% of the plant capacity from that time. There’s also potential for a long- term supply agreement for an additional 10 years after 2028, which would give us a guaranteed market for our products as we look to extend Nechalacho’s mine life in Stage 2 operations and bring our other projects on-line.”

    Vital had previously secured customer acceptance from REEtec for its rare earth product in May 2021, in accordance with the terms of the Definitive Offtake Agreement announced in December 2020. REEtec is currently using Vital’s product as its principal feedstock for its rare earth separation facility.

    Vital reports that its Saskatoon plant is under construction, with commissioning to commence at the end of 2021, and commencement of commercial production in mid-2022.

    Jonathan Norris
    Jonathan is a founder of Mining.com.au and has been covering the resources industry since 2018. With over 17 years experience in print, broadcast and online media, Jonathan has seen first hand the transformative effect of online niche media.

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    • Delayed Prices (USD) - Last Updated 06-12-2021
    • Gold $1,782.60
    • Silver $22.51
    • Platinum $930.00
    • Palladium $1,750.00
    • Dalian Iron Ore i2205 $98.48
    • Aluminium $2,623.00
    • Cobalt $67,050.00
    • Copper $9,418.00
    • Lead $2,210.50
    • Nickel $20,030.00
    • Tin $39,335.00
    • Zinc $3,161.50