Battery minerals, Commodities, Exploration/Development, News

What makes Yangibana unique

Through Yangibana, Hastings Technology Metals is set to deliver one of the highest margin rare earths projects in the world.

The Yangibana rare earths project in WA stands apart for its unique grade, where 37 per cent of its mineral content is made up of neodymium-praseodymium (NdPr) – a particularly important mineral for the green energy transition.

Hastings chief financial officer Teck Lim said the high makeup of NdPr is expected to drive strong margins into the future.

“In terms of basket price and analysis, due to Yangibana’s high neodymium and praseodymium, if you look at the weighted average price that we will receive, there is significant head room to our all-in cost,” he said during a recent investor call.

According to Hastings, the Yangibana mineral blend is predicted to fetch $US54.1 per kilogram as a base case – above a two-year historical total rare earth oxide (TREO) average of $US48.1/kg.

This is also well above a forecast operational expenditure of $US27/kg for the Yangibana project.

Lim said the asset’s outlook was supported by looming supply gaps.

“I was in Barcelona recently for the rare earths conference (2023 REIA Annual Conference in June),” Lim said. “I did speak to the head of Wood Mackenzie, and consistent with other market participants, the market is going to go into deep supply deficit.

“Our customer thyssenkrupp has also scoured the globe for rare earths monazite concentrate and there is not a lot of supply coming online and that will really drive economics and our project is well-timed to participate in that high-price environment.”

Hastings and engineering services company thyssenkrupp recently expanded their offtake services contract for Yangibana.

The contract was originally signed in April 2021 and will now be expanded to align with the Stage 1 development of the project.

thyssenkrupp has committed to increasing its volume to two-thirds of Yangibana’s annual production volume for the first five years, commencing in the second quarter of 2025 – just as Yangibana commences concentrate production.

Subscribe to Australian Resources & Investment and receive the latest news on commodity prices, resource developments, executive movements and more.

Previous ArticleNext Article
Send this to a friend