Rare earths miner VHM Ltd. has ended its offtake deal with China’s Shenghe Resources for its Goschen rare earths project in Victoria, Australia, after key conditions weren’t met.
VHM said the decision reflects its proactive strategy to unlock greater long-term value by being able to engage with a broad range of partners in the critical minerals earths sector.
“This strategic shift comes at a time of surging demand for rare earths and critical minerals driven by the global energy transition, electrification, and advance manufacturing,” said VHM.
“The company is confident this approach will enhance flexibility, strengthen margins, and create significant shareholder value.”
VHM is targeting first production of rare earths and minerals concentrate by the end of 2027 and now has 100 per cent of its rare earths concentrate product available for offtake.
The company has hired Macquarie Capital to lead its discussion with offtake and potential project partners for the development of Goschen.
The Goschen project is VHM’s flagship development and is one of Australia’s most significant critical minerals projects with 413,107 tonnes of total rare earth oxide.
Goschen has a compelling rare earth assemblage that contains both light and heavy rare earth elements.
The project has a clear pathway to production as all key mining approval have been secured.
