VHM commits half of incoming heavy mineral concentrate to Mitsui
Australian rare earths and mineral sands developer VHM has signed a non-binding term sheet with Japanese trading and investment company Mitsui for the purchase of up to 65000 t/y of heavy mineral concentrate (HMC).
VHM plans to produce HMC from the Goschen rare earths and mineral sands project in Victoria, with the non-binding term sheet securing 50% of the project's planned production.
The partners have proposed an initial offtake term of three years with the option to extend for a further three years.
The term sheet builds on a previously received non-binding letter of interest but with clearly defined commercial terms.
Mitsui and VHM are now progressing a binding offtake agreement, with pricing to be determined by an agreed market-linked formula referencing prevailing zircon and titanium dioxide prices, on a free-on-board Australian port basis.
Mitsui may consider offering a trade finance facility to VHM with respect to the offtake agreement.
VHM has also committed 100% of the Goschen project's future rare earths concentrate to an offtake agreement with Illuka resources.
VHM is targeting first commercial production from Goschen late in 2026.
