Hastings Technology Metals has secured a buyer in Mongolia for material from its Yangibana rare earths project in Western Australia.

Hastings Technology Metals (ASX:HAS) has signed a memorandum of understanding (MOU) to sell mixed rare earths carbonate (MREC) to Baotou Sky Rock Rare Earth New Material in Mongolia. Both parties intent to formalize the deal within 12 months of signing the MOU. The agreement is Hasting Technology Metals’ first offtake for its Yangibana project in Western Australia; the company’s share price jumped 33.33 percent on Tuesday (August 1) after the news was made public. Sky Rock produces sintered neodymium magnets and samarium cobalt magnets. The high-powered magnets are sold to companies that use them in computers, mobile phones, motors for electric vehicles and audio-video systems.

China produces about 85 percent of the world’s rare earths, and its dominance has raised concerns over supply. Australia is the world’s second-largest producer of the metals, according to 2016 data from the US Geological Survey . Other Australian rare earths projects include the Northern Minerals’ (ASX: NTU ) Browns Range three-year pilot plant operation, which will process 60,000 tonnes of ore per year to produce the in-demand magnet metals dysprosium and terbium. Northern Minerals’ mine, which will feed the plant at Browns Range, is under construction, but is expected to begin production in mid-2018. Don’t forget to follow us @INN_Resource for real-time news updates! Securities Disclosure: I, Melissa Shaw, hold no direct investment interest in any company mentioned in this article.

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