Hastings Technology Metals Ltd (ASX:HAS, OTC:HSRMF) executive chairman Charles Lew talked with Proactive’s Tylah Tully about the company’s flagship Yangibana project and its strategic developments. He highlighted the resource’s rich neodymium and praseodymium reserves, critical for permanent magnets. Lew detailed Hastings’ progress, including infrastructure developments, procurement of key equipment, and a 17-year mine life projection.
Lew also explained the company’s recent Memorandum of Understanding (MoU) with Saudi Arabia’s Ministry of Investment. The partnership aligns with Saudi Arabia’s Vision 2030 to diversify its economy, focusing on rare earth value chains from mine to magnet production. Hastings aims to leverage its proprietary technology to establish a downstream operation in Saudi Arabia.
Furthermore, Lew outlined Hastings' strategic relationships, including with ThyssenKrupp and magnet manufacturer JL Mag, to secure offtake agreements and advance its downstream capabilities. “We are very pleased and delighted to partner with a government that shares our vision,” Lew remarked.
With plans for significant growth and a long-term vision to supply global markets, Hastings is capturing attention in the rare earth sector.
Highlights
- Yangibana Project: 30 million tonnes of resources, 20 million tonnes of reserves, and a projected 17-year mine life. Annual production of 37,000 tonnes of concentrate targeted for the Chinese market.
- Infrastructure completed: Accommodation village, airstrip, internal roads and key equipment for beneficiation plant procured.
- Saudi Arabia MoU: Partnership with Saudi Arabia’s Ministry of Investment to develop downstream capabilities, including hydro plants and oxide separation. Hastings will use proprietary technology and collaborate with JL Mag for advanced magnet production.
- Strategic investments: Agreements with ThyssenKrupp and JL Mag secure offtake and position Hastings as a future supplier of non-China-made magnets.
- Investor opportunity: Shares are undervalued compared to potential growth. Recent strategic developments underscore Hastings’ vision for a mine-to-magnet enterprise.
Impressive ore body
Tylah Tully (TT): I'm joined by Hastings Technology Metals executive chairman Charles Lew, who's going to talk to us about the company, its flagship Yangibana project, and run us through its latest news. Charles, thanks for joining us today.
Charles Lew (CL): Good morning, Tylah. Thank you for inviting me to this interview.
TT: So, let’s start with Hastings. Can you give us a background on the company and its role in the rare earth sector?
CL: Sure. Hastings is a junior miner that goes back to 2014. My involvement began when I commissioned the first drilling at Yangibana. At that time, there was nothing—it was the maiden drilling. We discovered this amazing ore body, rich in neodymium and praseodymium, two critical raw materials needed for super magnets.
TREO, which stands for total rare earth oxides, shows that this ore body has about a 40% NdPr to TREO ratio. That’s double the average ratio compared to other deposits worldwide. We also have another project up north in the Kimberley region called Brockman. It’s a heavy rare earth project with 42 million tonnes of primarily dysprosium. However, we are focusing all our resources and management time on Yangibana, which has been our priority for the last 10 to 11 years.
TT: Let’s get more into Yangibana now. What work is currently being done at the project, and what potential do you see there?
CL: We’ve been working on Yangibana since its discovery. Over the last ten years, we’ve defined 30 million tonnes of resources and 20 million tonnes of reserves, which support a 17-year mine life. Once operational, we’ll produce about 37,000 tons of concentrate annually.
The concentrate will primarily be sold into China, where downstream capabilities and expertise in rare earth processing are well established. ThyssenKrupp, a German raw materials trading company, has committed to purchasing two-thirds of our production, which is crucial for securing project financing.
We’ve also built significant non-process infrastructure at Yangibana. This includes a 295-room accommodation village, over 20 kilometres of internal roads, a 1.8-kilometre airstrip, water bores and telecommunications infrastructure. Additionally, we’ve procured the major equipment needed for constructing the beneficiation plant, which will begin next year.
Ministry of Investment MoU
TT: Recently, Hastings signed an MoU with the Ministry of Investment in Saudi Arabia. What can you tell us about this development?
CL: Over the last year, we’ve engaged with the Saudi government, which has a Vision 2030 agenda to diversify its economy away from oil. They are keen to develop a mine-to-magnet supply chain within Saudi Arabia, aligning with their goals of sustainability and electrification.
Mine to magnet strategy.
Our MoU with the Ministry of Investment sets the stage for building a downstream hydro plant to produce mixed rare earth carbonates. This is the second stage in the mine-to-magnet process. We’ve partnered with JL Mag, the world’s largest magnet manufacturer, to bring advanced technology to the project. Saudi Arabia will also contribute feedstock from its local resources.
The Saudi government’s GSI program includes a $9 billion investment, with Hastings allocated $1 to $1.5 billion for the mine-to-magnets initiative. The MoU positions Hastings as a key partner in developing this downstream capability.
Investment case
TT: Lastly, what is your investor case? Why should investors be attracted to Hastings?
CL: If you look at the past few years, the price of neodymium-praseodymium has fluctuated. When it was at $170 per kilogram in 2021, Hastings' share price was around $5.50. Today, with prices around $60, our shares are about $0.30. However, strategic moves like our partnership with JL Mag and the Saudi MoU highlight our long-term vision of creating a mine-to-magnet value chain.
There is significant demand for non-China-made magnets from regions like Europe, North America, Japan and Korea. If we can successfully produce magnets in Saudi Arabia, we’ll capture a key position in the global market.
TT: It sounds like Hastings is poised for rapid growth. Thank you for sharing these insights today, Charles.
CL: Thank you, Tyler.
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