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Highlights
- Hastings reduces Yangibana project capital costs by $56 million.
- Construction is 32% complete, targeting first production by 2026.
- Strategic investment from JL Mag Rare-Earth Co boosts progress.
Hastings Technology Metals Ltd (ASX:HAS) continues to make significant progress at its Yangibana rare earths and niobium project in Western Australia. The company has successfully reduced the project's capital costs by $56 million, bringing the total capex to $474 million, with $154 million already allocated to mine site infrastructure.
According to Hastings' annual report, construction is advancing rapidly, with 32% of the project completed as of June 30. A major focus has been on building essential infrastructure, including a 298-bed accommodation camp, a 1.8-kilometer airstrip, four water bores, telecommunications towers, and over 20 kilometers of site access roads.
Yangibana, located in WA’s upper Gascoyne region, is now entering the construction phase of a beneficiation plant, with plans to produce the first concentrate by 2026. The company has been able to secure long-lead equipment, such as flotation cells and storage silos, which have already been delivered to the site. This investment in equipment should help keep future costs lower as the project moves closer to completion.
In a significant move, Hastings signed a $210 million engineering, procurement, and construction (EPC) contract with GR Engineering Services in August. Additionally, the release of a maiden niobium resource at Yangibana, totaling 6.7 million tonnes at 2,305 parts per million (ppm) for 15,501 tonnes of niobium pentoxide (Nb2O5), further strengthens the project's value proposition.
Hastings also gained a strategic investor in JL Mag Rare-Earth Co, a producer of rare earth permanent magnets, through a subsidiary based in Hong Kong. This investment saw JL Mag acquire a 9.8% stake in Hastings, solidifying key partnerships that will support the project’s development.
Hastings chairman, Charles Lew, expressed optimism about the project’s trajectory, highlighting the company’s accomplishments in driving down capital costs, forming key partnerships, and making significant discoveries.
By 13:40 AEST, Hastings' share price had risen to 29 cents, marking a 3.57% increase since the market opened. As construction continues, the Yangibana project remains on track to become a major rare earths and niobium producer in Australia.
