Australian natural resources company Harena Resources has taken a major step towards securing a customer for its rare earth products by signing a nonbinding indicative offtake term sheet with US-based United Rare Earths. The agreement will see United purchase 50% of the mixed rare earth carbonate product produced from Harena’s Ampasindava rare earths ionic clay project in Madagascar.
Harena’s project is said to be one of the most significant ionic clay rare earth sites outside of China, with a focus on supplying critical rare earth magnet metals such as neodymium, praseodymium, dysprosium, and terbium to Western supply chains for the production of permanent magnets.
United, on the other hand, is developing a rare earths hub in Tennessee, which includes a magnet recycling center, a refinery, and a technology center of excellence. The term sheet outlines key terms for the future binding offtake agreement, which will initially be valid for five years with the option of extending.
Harena Managing Director Joe Belladonna sees this agreement as a significant milestone for the company, providing a pathway towards securing a reliable customer well in advance of production. He believes that the partnership with United validates the quality of the Ampasindava resource and its potential to become a key player in the rare earth market.
United’s Chairperson Jeff Willis also expresses confidence in the partnership, stating that the agreement will ensure a stable supply of rare earth oxides for United’s long-term downstream strategy in the US.
Both companies are optimistic about the collaboration and look forward to a mutually beneficial relationship in the future. This partnership represents a significant opportunity for both Harena Resources and United Rare Earths to strengthen their positions in the rare earth market and contribute to the development of a sustainable rare earth supply chain.
