Hastings Technology Metals Limited (ASX: HAS) Signs MOU with Saudi Arabia
Memorandum of Understanding
Hastings Technology Metals Limited (“Hastings” or the “Company”) has signed a non-binding Memorandum of Understanding (“MOU”) with the Ministry of Investment of Saudi Arabia (“MISA”). This agreement is part of the Global Supply Chain Resilience Initiative (“GSCRI”) and aims to establish an integrated rare earths downstream processing supply chain in the Kingdom of Saudi Arabia (“KSA”). The total investment under the GSCRI program is expected to be SAR 35 billion (US$9 billion / A$14 billion).
Strategic Development Plan
The MOU outlines Hastings’ strategy to develop a fully integrated downstream rare earths processing facility with MISA’s support. The Company’s ongoing two-stage development strategy for its Yangibana Rare Earths and Niobium Project includes constructing a Beneficiation Plant, which is currently 33% complete, and evaluating locations for a Hydrometallurgical Plant.
Hastings intends to assess the competitiveness and financing options for its Stage 2 plant, with a decision expected within six months. The Company aims to leverage KSA’s position to supply rare earth magnet products to Original Equipment Manufacturers (OEMs) and Tier 1 suppliers in key markets.
Executive Remarks
Hastings Executive Chairman, Charles Lew, stated, “We are pleased to have signed the MOU with MISA as we progress our two-stage development strategy at Yangibana. We look forward to working with the Saudi Government on plans for the construction of a Hydrometallurgical Plant in KSA.”
Partnership with JL Mag
JL Mag Rare-Earth Company Ltd (“JL Mag”) will act as the designated offtaker for products developed under the MOU. The company, a leading rare earths permanent magnets producer, will become a 9.8% strategic investor in Hastings, reinforcing collaboration in the rare earths supply chain.
In addition, Hastings has appointed Mr Mohammed Mugaibel as its KSA country representative to expedite the establishment of joint venture partnerships and regulatory approvals necessary for the project.
Industrial Investment License Acquisition
Hastings previously secured an Industrial Investment License from MISA, allowing the Company to proceed with further due diligence in KSA. The partnership involves multiple phases aimed at achieving comprehensive development in line with KSA’s Vision 2030 plan for economic diversification.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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