Iluka Resources has entered into a long-term supply agreement with VHM Limited to purchase all planned rare earth concentrate from the upcoming Goschen project in western Victoria.
Under the 18-year deal, VHM will supply Iluka with 146,000 tonnes of rare earth concentrate, containing roughly 86,000 tonnes of total rare earth oxides.
This translates to an average annual delivery of 8,320 tonnes of concentrate, which will serve as a crucial complementary feedstock for Iluka’s Eneabba rare earths refinery in Western Australia.
To back VHM’s development of the Goschen asset, Iluka has committed a AU$40 million secured convertible note. The funding package will be delivered in two tranches, starting with an initial AU$10 million, followed by a further AU$30 million once VHM reaches its final investment decision for construction.
Furthermore, VHM has granted Iluka a right of first refusal over any additional rare earth production from Goschen, as well as from its earlier-stage Cannie and Nowie exploration projects.
The Eneabba facility, which represents Australia’s first fully integrated rare earths refinery, is designed to produce highly sought-after separated light and heavy rare earth oxides.
Construction has now passed the 50 per cent completion mark, with commissioning slated for mid-2027.
Iluka Managing Director Tom O’Leary noted that the agremeent builds on recent commercial milestones, including the company’s inaugural offtake agreements.
“Eneabba is a strategic infrastructure asset that is bringing new mines into production, with Iluka as their Australian refining customer,” O’Leary said.
“In VHM, we have secured a feedstock partner in western Victoria, a province notable for large deposits and attractive assemblage of heavy rare earths.”
VHM has environmental approvals for Goschen in place and has received letters of funding interest from both the Australian and US governments.
The pricing for the supplied concentrate will be determined via a market-linked mechanism tied directly to the prices Iluka realises from its finished oxide sales at Eneabba.
