May 21 (Reuters) – Critical Metals said on Thursday it has signed a 15-year binding offtake agreement with REalloys for rare earth concentrate from its Tanbreez project in Greenland.
Under the agreement, REalloys will buy 15% of annual rare earth concentrate production from the project, which is one of the world’s largest known heavy rare earth deposits.
Shares of Critical Metals were up 8% in premarket trading.
• The agreement formalizes and expands on a non-binding deal signed by the companies last October.
• It also follows Greenland’s approval in April for Critical Metals to increase its ownership in the project to 92.5%.
• Critical Metals said the deal strengthens the commercial outlook for the Tanbreez project as it moves toward production.
• REalloys will receive priority rights to concentrate containing higher levels of the critical heavy rare earth elements, dysprosium and terbium, along with a right of first refusal over additional volumes.
• Deliveries will be made from the Tanbreez port in southern Greenland, with pricing linked to international rare earth oxide benchmarks.
• United States and its allies have stepped up efforts to secure supplies of critical minerals outside China, which dominates much of the global rare earth processing industry.
(Reporting by Arunima Kumar in Bengaluru; Editing by Joyjeet Das)