- Northern Minerals has terminated the Rare Earths supply deal with Lianyugang which was signed two years ago due to breach violations
- The company terminated the deal as JFMAG breached the agreement and did not give any more details
Northern Minerals has terminated the Rare Earths supply deal with Lianyugang which was signed two years ago due to breach violations.
The deal was signed with China’s Lianyugang Zeyu New Materials Sales (JFMAG) in April 2017 for the supply of rare earths output from its Browns Range project in Western Australia.
The company terminated the deal as JFMAG breached the agreement and did not give any more details.
JFMAG was to make a pre-payment of $10 million to Northern Minerals, with the final value of the agreement depending on volumes delivered.
The cancellation comes after speculation that China could cut off supplies of rare earths metals, a key ingredient in high-technology consumer electronics and military equipment, to the United States as part of the trade war.
The Browns Range is expected to produce 573,000 kg of mixed heavy rare earth carbonate containing terbium and dysprosium over three years.
Located 160km south-east of Halls Creek in northern Western Australia.
The Browns Range Project aims to become the first significant dysprosium producer outside of China.
Northern Minerals is an exploration and development company that is focussed on heavy rare earth projects, particularly the element dysprosium.
The company is working towards securing new arrangements for offtake produced from Browns Range, which produced its first rare earth carbonate in October last year.
Northern Minerals dropped 3.13 per cent today and is currently selling at 6.2¢ per share.