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Northern reveals Browns Range offtake partner

30th September 2013

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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JOHANNESBURG (miningweekly.com) – ASX-listed Northern Minerals disclosed on Monday that its offtake partner for the Browns Range project, in Western Australia, was Japan-based global trading company Sumitomo.

The parties have been collaborating to formalise product specifications, transport and pricing for the supply of 1 500 t/y of total rare earth oxide heavy rare earths concentrate product from the project, in northern Western Australia, to Sumitomo.

“We are very pleased with the progress of our discussions to date, and look forward to taking the Browns Range project through to production and delivering to global customers such as the Sumitomo Corporation,” Northern MD and CEO George Bauk said.

Northern expected the memorandum of understanding, which was executed in December, to be converted to a binding agreement following the completion of a feasibility study in mid-2014.

The group aimed to start production in 2016.

The company noted that the mine’s production, which was expected to start in 2016, would not all be allocated to Sumitomo, with the agreement allowing Northern to continue talks with other potential buyers.

“We intend to leverage the success of this commercial arrangement to establish similar arrangements with other global companies for the exploration and development of the greater Browns Range area,” Bauk explained.

Edited by Creamer Media Reporter

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