Executes Agreement for Design and Supply of Acid-Bake Rotary Kiln and Technical Assistance with FLSmidth Pty Ltd
Executes Acid Bake Kiln Contract with FLSmidth
Sydney, Oct 17, 2018 AEST (ABN Newswire) - Hastings Technology Metals Limited (
ASX:HAS) ("Hastings" or the "Company") is pleased to announce that, through its wholly owned subsidiary Yangibana Pty Ltd, it has signed an agreement with FLSmidth Pty Limited (FLSmidth) for the Design and Supply of Acid-Bake Rotary Kiln and Technical Assistance, an essential rare earths processing component required to progress development of the Yangibana Rare Earths Project.
Highlights:
- 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) (FRA:5AM) is advancing its Yangibana Rare Earths Project in the Upper Gascoyne Region of Western Australia towards production. The proposed beneficiation and hydro metallurgy processing plant will treat rare earths deposits, predominantly monazite, hosting high neodymium and praseodymium contents to produce a mixed rare earths carbonate that will be further refined into individual rare earth oxides at processing plants overseas.
Neodymium and praseodymium are vital components in the manufacture of permanent magnets which is used in a wide and expanding range of advanced and high-tech products including electric vehicles, wind turbines, robotics, medical applications and others. Hastings aims to become the next significant producer of neodymium and praseodymium outside of China.
Hastings holds 100% interest in the most significant deposits within the overall project, and 70% interest in additional deposits that will be developed at a later date, all held under Mining Leases. Numerous prospects have been identified warranting detailed exploration to further extend the life of the project.
Brockman Project
The Brockman deposit, near Halls Creek in Western Australia, contains JORC Indicated and Inferred Mineral Resources, estimated using the guidelines of JORC Code (2012 Edition).
The Company is also progressing a Mining Lease application over the Brockman Rare Earths and Rare Metals Project.
Hastings aims to capitalise on the strong demand for critical rare earths created by the expanding demand for new technology products.
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