Hastings completes US$15M Thai rare earths plant deal

Hastings Technology Metals has completed a 49 per cent acquisition of the Kabin Buri hydrometallurgical processing plant in Thailand, as the company fast-tracks its transition from miner to rare earths downstream producer.

The US$15 million (A$21.3 million) deal sees Hastings take a significant stake in the Thai facility’s owner, with a significant portion of the payment tied to performance. The consideration includes a previously paid US$0.5 million cash deposit and US$8 million in equity, to be satisfied through the issue of 23 million Hastings shares at an agreed price of 50 cents apiece to its partner, Enuo Holdings.

A further US$1 million is payable as a commissioning payment, with the final US$5.5 million in deferred cash consideration payable only when contractual production and sales performance milestones are met.

The company says work is already progressing at the facility to upgrade its planned nameplate output capacity to 12,000 tonnes per annum of mixed rare earth chloride (MREC), representing a doubling of the plant’s originally contemplated throughput.

‘Completion gives us a clear run at construction and commissioning, with feedstock contracted.’

Hastings Technology Metals chief executive officer Vince Catania

Hastings says testing and commissioning are on track to kick off in the first quarter, with first production expected to follow shortly after.

Importantly, the company says it has de-risked the plant’s start-up phase by securing a binding feedstock supply agreement with Enuo for a minimum of 10,000 tonnes per annum of monazite concentrate. The supply is expected to come from Africa, giving Hastings an independent source of feed while its flagship Yangibana project in Western Australia is brought online to potentially provide a longer-term runway for the plant’s initial years of operation.

Hastings Technology Metals chief executive officer Vince Catania said: “Completion gives us a clear run at construction and commissioning, with feedstock contracted. Our job now is to get on-spec product out of the door by Q2 2027.”

The acquisition accelerates Hastings’ mine-to-market strategy, transforming the Kabin Buri facility into a significant processing hub. The plant chemically cracks and leaches monazite concentrate into mixed rare earth chloride (MREC), an intermediate product for specialist rare earths separation plants.

It is one of the rare earth industry’s most technically demanding processing steps and, with only a handful of operators able to do it successfully, has become one of the sector’s biggest barriers to entry.

Based on management’s indicative estimates, the now-expanded plant could generate US$110.4 million (A$158M) in gross annual revenue and US$35.7 million (A$51.5M) in profit before tax at full capacity. Hastings’ share of that profit is forecast at US$15.5 million (A$22.35M) in the first full year of production, followed by US$17.5 million (A$25.2M) thereafter.

Looking ahead, Hastings has begun preparing an investment promotion application with Thailand’s Board of Investment (BOI). If successful, the promotion could allow the plant to be majority foreign-owned, opening the door for Hastings to increase its stake from the current 49 per cent. It could also provide significant tax incentives, including a corporate income tax exemption for up to 13 years.

By picking up a near-term production asset in Thailand, Hastings has found a shortcut to cash flow and skipped the long lead times that stall so many aspiring miners. Its Yangibana project remains the main event, but the Thai plant is a handy stepping stone towards a place among the world’s downstream players.

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