Vital Metals and REEtec has agreed to amend their existing offtake agreement which will increase the volume by 50%. The off-take agreement will supply REEtec with 750tons NdPr per year over 5 years. The increase equates to 75% of Vital Metals’ (Vital) expanded Saskatoon rare earth extraction plant capacity. REEtec is using Vital’s product as its principal feedstock.
Vital’s Saskatoon plant is under construction with commissioning to commence at the end of the year and commercial production expected mid-2022.
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 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.”
Under the amended agreement, Vital will sell to REEtec a rare earth carbonate product containing a minimum of 750t Neodymium/Praseodymium (NdPr), contained within 2,000t/year total rare earth oxides (TREO). This represents a total of 75% of Vital’s expanded operation at its Saskatoon rare earths extraction plant and represents a 50% increase in the product to be supplied under the existing Definitive Off-take Agreement.
“We are very pleased to have partnered with Vital Metals and to have established a fruitful cooperation which will benefit both our companies. The increased supply of NdPr enables us to further strengthen our position as a supplier of high-quality products based on a sustainable manufacturing process and a transparent supply chain.”, REEtec CEO Sigve Sporstøl said.
Read the entire announcement here.