RZ Resources Ltd. has signed an agreement with Japan’s Marubeni Corp. for a AU$15 million investment to develop its Copi rare earths project in New South Wales.
The agreement gives Marubeni the option to obtain equity participation of up to 3.375 per cent with an option to provide additional investment to increase participation to 5 per cent, along with certain marketing and collaboration rights.
RZ Resources Executive Chairman David Fraser said: “This transaction reflects a deep strategic partnership that strengthens our ability to deliver a globally significant, geopolitically resilient supply of critical minerals through the Copi Project.”
The rare earths project will produce heavy mineral sands products such as rutile, ilmenite, zircon, and monazite from a mineral sands deposit to supply to sector such as aerospace and defence.
The Marubeni investment further deepens the long-term strategic relationship between RZ Resources and Japan. The agreement follows another Japanese investment made by JX Advanced Metals Corp. in June.
Marubeni. RZ Resources and JX will jointly advance the project, including upgrades to RZ Resources’ existing mineral separation plant and enhancements to RZ Resources’ definitive feasibility study.
The deal marks rising interest in securing stable supplies of critical minerals and rare earths. Demand for titanium is expected to grow alongside the expansion of the aerospace and defence industries, while rare earth demand is increasing due to permanent magnets used in electric vehicles and wind turbines. Australia is uniquely positioned to provide a secure supply of critical minerals.
RZ Resources is working on commercial arrangements with several strategic partners in the U.S. in connection with investment in the company and the Copi project.
For its part, Marubeni will work towards the steady supply of critical minerals and rare earths, with an aimto expand into midstream and downstream areas to build an integrated supply chain.
