Hastings Technology Metals Limited (ASX: HAS), a Rare Earths exploration company in Western Australia, announced on 15 March 2019 that through its 100% owned subsidiary company, Yangibana Pty Ltd, the company had awarded the below-mentioned equipment supply contracts.
Total Air Pollution Control Pty Ltd (TAPC) was awarded the contract to design and supply Rotary Kiln Off Gas Scrubbing Plant. The contract is a fixed price contract which has two stages, i.e. design and manufacture. The key feature of the agreement requires mechanical and process guarantees for the performance of the Off-Gas Scrubbing Plant. Further, the delivery to the site is supposed to be done in the third quarter of 2020, which depends on the confirmation of the start of phase 2 period.
The Off-Gas Scrubbing Plant forms an important element of the processing plant. It handles the treatment of the waste gas produced by the Acid Bakery Rotary Kiln to make sure that it meets environmental emission compliance. The grant of the plant would enable the development of the related civil and structural design work easier. It would also allow the beginning of the approvals related to the Kiln/Scrubber system.
Outotec Pty Ltd was awarded the contract for the design and supply of the SAG Mill. This contract is also a contract with staged commitments. Stage 1 is the designing phase, and Stage 2 is the manufacturing phase. The contract requires mechanical and process guarantees for Sag Mill Performance from Outotec Pty Ltd. The site delivery is expected by quarter 1 end of 2020.
The grant of SAG Mill will give sureness about the schedule and would enable the development of the linked civil, mechanical and electrical design works ahead.
HAS had awarded these contracts to both the parties, to fit in with their commitments to choose the only Tier 1 equipment suppliers. These Tier 1 equipment suppliers have the potential to deliver the required performance guarantees. Also, the company is working on the development of the Yangibana Project. Therefore, it has partnered with TAPC and Outotec, which denotes an important landmark in the progress of the Yangibana Project.
The Yangibana Project is a Rare Earths Project based in Australia. The project spreads in the region of 650 km2 and has substantial Neodymium and Praseodymium resources.
Neodymium is found in equipment like color televisions, energy-saving lamps, fluorescent lamps etc. It is also used in the preparation of permanent magnets. On the other hand, Praseodymium is used for the preparation of yellow glass goggles for glassblowers, as well as welders.
The Yangibana Project, being a source of rare earth elements, has a wide range of application, and therefore, there is a scope for the company to experience better growth in near future.
In the previous six months, the shares of HAS had generated a negative return of 5.56%. However, the stock had given a decent YTD return of 17.24%. By the end of the trading period on 18 March 2019, the closing price of the shares of HAS was A$0.175. The company has a market capitalization of A$132.27 million with approximately 778.08 million.
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