Vietnam Rare Earth Company & two Australian companies sign exploitation deal

The Vietnam Rare Earth Company (VTRE) signed an MoU on July 26 with two Australian companies - Australian Strategic Materials Ltd. (ASM) and Blackstone Minerals Ltd (Blackstone) - on rare earth mining and production.

With identified synergies and shared objectives, the three-way agreement provides the framework for the companies to cooperate across a number of areas, most notably in identifying, assessing, and securing rare earth element (REE) mining opportunities in Vietnam that can be used as feedstock for VTRE’s REE refinery; strengthening the parties’ capability in securing REE mining concessions; potential co-investment by Blackstone, ASM, and VTRE; and securing long-term offtake of REE oxides.

Under the MoU, VTRE has the scope to explore opportunities to increase its REE oxide production by utilizing capacity at Blackstone’s beneficiation plant at the Ban Phuc Nickel Mine (BPNM) in northern Son La province. BPNM could beneficiate locally-sourced REE ores to produce REE concentrates that can be further refined at VTRE’s established REE refinery. “I welcome the opportunity to work with Blackstone under this MoU and building a long-term relationship, and extending my existing relationship with ASM, as this is a great opportunity to develop the full value chain for rare earths in Vietnam,” said Mr. Luu Anh Tuan, Chairman of VTRE.

ASM signed a binding agreement with VTRE in April 2023 for the purchase of rare earth oxides from Vietnam, to be used as feedstock at ASM’s Korean Metals Plant (KMP), with the intention to progress this to a further long-term supply agreement.

The MoU is an extension of ASM’s existing relationship with VTRE and a demonstration of both companies’ commitment to continue exploring long-term supply agreements and manufacturing opportunities.

“This MoU has the potential to drive a more cooperative approach within the rare earth elements and critical minerals sector and deliver positive outcomes for all parties involved,” said Ms. Rowena Smith, Managing Director and CEO of ASM. “We have already established a strong relationship with the VTRE team and I am excited by the progress they are making to increase their oxide production capacity. The partnership they are looking to build with Blackstone has the potential to benefit ASM’s existing supply of rare earth oxides for processing at the KMP.”

Mr. Scott Williamson, Managing Director of Blackstone, said that for Blackstone, a potential move into rare earths in Vietnam aligns with its technology mineral strategy and is synergistic with its Ta Khoa project and its existing relationships in the electric vehicle (EV) industry.

“For VTRE, teaming up with Blackstone gives it access to our extensive knowledge in ESG management, mining, and minerals processing and refining, while for ASM it is a great opportunity to extend its relationship with VTRE and to progress its vision of full vertical integration in critical minerals,” Mr. Williamson said. “With this MoU, Blackstone, VTRE, and ASM will progress discussions with a view to potentially establishing a world leading fully-integrated rare earths business.”