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iluka-resources|mitsui|vhm|australia|goschen|critical-minerals|mineral-sands|rare-earths|titanium-dioxide|zircon|victoria

VHM commits half of incoming heavy mineral concentrate to Mitsui

Goschen project area

Goschen project area

12th October 2026

By: Marleny Arnoldi

Online News Editor

     

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Australian rare earths and mineral sands developer VHM has signed a non-binding term sheet with Japanese trading and investment company Mitsui for the purchase of up to 65 000 t/y of heavy mineral concentrate (HMC).

VHM plans to produce HMC from the Goschen rare earths and mineral sands project in Victoria, with the non-binding term sheet securing 50% of the project's planned production.

The partners have proposed an initial offtake term of three years with the option to extend for a further three years.

The term sheet builds on a previously received non-binding letter of interest but with clearly defined commercial terms.

Mitsui and VHM are now progressing a binding offtake agreement, with pricing to be determined by an agreed market-linked formula referencing prevailing zircon and titanium dioxide prices, on a free-on-board Australian port basis.

Mitsui may consider offering a trade finance facility to VHM with respect to the offtake agreement.

VHM has also committed 100% of the Goschen project's future rare earths concentrate to an offtake agreement with Illuka resources.

VHM is targeting first commercial production from Goschen late in 2026.

 

Edited by Creamer Media Reporter

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