Executes Agreement for Design and Supply of Acid-Bake Rotary Kiln and Technical Assistance with FLSmidth Pty LtdHastings Technology Metals Limited (
- Design and Supply of Acid-Bake Rotary Kiln and Technical Assistance with FLSmidth Pty Ltd
- FLSmidth Pty Ltd globally recognised supplier of engineering, equipment and service solutions
- Fixed price contracting consideration of AUD13.2million
- Significant milestone in development of Yangibana rare earths mine
Key conditions of the Design, Supply and Technical Assistance contract for the Acid-Bake Rotary Kiln include:
1. Fixed price contracting consideration of AUD13.2million, funded from Hastings existing cash reserves
2. Deed of Parent Company Guarantee entered into between Hastings and FLSmidth
3. Mechanical guarantee for Acid-Bake Rotary Kiln performance from FLSmidth
4. Delivery anticipated in Q1 2020
The Acid-Bake Rotary Kiln incorporates integral and associated acid concentrate mixing and feeding equipment, directs waste gas to a separate scrubbing facility, roasts product discharge and provides a natural gas fired heating system essential for the processing of rare earths.
Following receipt of tender submissions, Hastings awarded the Acid-Bake Rotary Kiln contract to FLSmidth, a market-leading supplier of engineering, equipment and service solutions to the global mining industry. Based in Copenhagen, Denmark, with more than 11,700 employees worldwide, FLSmidth improves performance, drives down costs, and reduces the environmental impact of operations. FLSmidth is listed on NASDAQ OMXC20 Nordic Copenhagen (former Copenhagen Stock Exchange) and has offices in more than 50 countries.
Charles Lew, Executive Chairman of Hastings commented that "execution of the Acid-Bake Rotary Kiln contract with internationally recognised FLSmidth is a crucial step towards development plans for Yangibana. Combined with the appointment of KfW IPEX-Bank, and recent EPA progress, this is yet another important milestone in getting the Yangibana rare earths mine built so that we can satisfy global demand and supply high grade Neodymium and Praseodymium (NdPr) to our MOU offtake customers."
About Hastings Technology Metals Ltd
Hastings Technology Metals Ltd (ASX:HAS) is a leading Australian rare earths company, with two rare earths projects hosting JORC-compliant resources in Western Australia.
- The Yangibana Project hosts Probable Reserves totaling 5.15 million tonnes at 1.12% TREO including 0.45% Nd2O3+Pr6O11 within JORC Resources totalling 21.0 million tonnes at 1.17% TREO (comprising Measured Resources of 3.9 million tonnes at 1.19% TREO, Indicated Resources of 8.6 million tonnes at 1.25% TREO and Inferred Resources of 8.4 million tonnes at 1.09% TREO), including 0.40% Nd2O3+Pr6O11.
- The Brockman deposit contains JORC Indicated and Inferred Resources totalling 41.4 million tonnes (comprising 32.3mt Indicated Resources and 9.1mt Inferred Resources) at 0.21% TREO, including 0.18% HREO, plus 0.36% Nb2O5 and 0.90% ZrO2.
- Rare earths are critical to a wide variety of current and new technologies, including smart phones, electric vehicles, wind turbines and energy efficient light bulbs.
- The Company aims to capitalise on the strong demand for rare earths permanent magnets created by expanding new technologies.
Joint Company Secretary