VHM has signed a non-binding letter of interest (LOI) with Mitsui & Co for the potential supply of 40 per cent of heavy mineral concentrate (HMC) from its Goschen rare earths and mineral sands project in Victoria.
The non-binding LOI with the Japanese multinational company outlines the groundwork for a future agreement between the two companies.
If proceeded, Mitsui would purchase 40 per cent of VHM’s HMC production over an initial three-year term starting from the commencement of production.
In addition to offtake, the LOI contemplates Mitsui, at its discretion and subject to due diligence, proposing a trade finance facility to support the transaction.
“The partnering with Mitsui, a globally significant Japanese counterparty, not only provides VHM with long term offtake for its HMC it also provides a strategic funding facility,” VHM chief executive officer Ron Douglas said.
“VHM looks forward to establishing a long-term relationship with Mitsui.”
The LOI is non-binding and subject to the parties entering into a definitive agreement, but signals Mitsui’s interest in expanding its business relationship with VHM.
Goschen was granted a mining licence by Resources Victoria in April, enabling VHM to explore for minerals and build mining facilities to advance the project in line with the Victorian Government’s Critical Minerals Roadmap.
With both the mining licence and environment effects statement approved, Goschen is on track for first production in the fourth quarter of 2026.
“The approval of the Goschen mining licence is the latest significant milestone for VHM and further de-risks the project as we target a final investment decision,” Douglas said.
“For shareholders of the company and potential financiers, this is a critical approval in the ongoing process of advancing Goschen through development and into production.”
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