JOHANNESBURG (miningweekly.com) – Private mining company Rainbow Rare Earths has signed an offtake agreement with commodity trading company ThyssenKrupp Metallurgical Products for the rare-earth concentrate produced at its Gakara rare earths deposit, in Burundi.
The initial ten-year commercial agreement would see Rainbow produce 5 000 t/y of rare-earth concentrate or the downstream products resulting from this concentrate for supply to ThyssenKrupp Metallurgical Products.
ThyssenKrupp Metallurgical Products also had a first right of refusal over a further 5 000 t/y of concentrate produced at the mine, while being the exclusive agent for sale worldwide.
Rainbow was fast-tracking the Gakara project - with a high run-of-mine grade of 54.3% on average total rare-earth oxide on average - to production and would produce a high-grade concentrate through simple mining.
“We are delighted to have secured this offtake agreement with ThyssenKrupp Metallurgical Products. A partner of their calibre provides a strong endorsement of the project, its potential and our ability to deliver a high-quality product and we look forward to a long-term, mutually beneficial relationship with them,” Rainbow MD Martin Eales commented.
“This agreement is a key milestone for Rainbow and will enable us to sell concentrate, thereby , generating immediate revenue from first production.
“With this offtake now in place we will continue to progress our plans, with trial mining production anticipated to commence in the fourth quarter,” he added.
Further, ThyssenKrupp Metallurgical Products chairperson Kai-Norman Knötsch highlighted that the company looked forward to successful cooperation with Rainbow Rare Earths. “As the exclusive marketer of these high-quality products, we will have the opportunity to strengthen our customer relationships long term and gain further market share around the world.”