Tantalus Rare Earths Signs Supply Deal with ThyssenKrupp

Tantalus Rare Earths AG (ETR:TAE) announced that it’s signed a multi-year rare earth oxides supply contract with ThyssenKrupp Metallurgical Products GmbH (ETR:TKA).

As quoted in the press release:

Under the agreement, ThyssenKrupp will annually purchase 30 per cent of the output (up to 3,000 tons, once full production capacity is reached) of mixed rare earths oxide from the Tantalus’ project in Northern Madagascar. ThyssenKrupp will act as Tantalus’ exclusive distributer in Germany, and one of the distributors for Europe. The initial duration of the contract is three years from the start of commercial production at the project, with the option to extend it for a further seven years. The option for a total duration of 10 years is subject to ThyssenKrupp arranging debt funding for Tantalus covering 30 per cent of the planned investments until annual production level of 10,000 tons of mixed rare earths oxide is reached.

The pricing of the mixed rare earths oxide in this contract is linked to the content of various rare earths oxides present in the Tantalus product as well as to independently quoted market prices of such oxides. Rare Earth Elements identified in the Tantalus ionic clay deposit include Praseodymium, Neodymium, Terbium and Dysprosium, all in high demand for fast-growing magnet applications in the automotive and renewable energy industries.

Thomas Hoyer, CEO of Tantalus, commented:

This contract we have signed with ThyssenKrupp is not only a significant milestone for Tantalus but it also represents a further key endorsement of both the viability of our rare earths project in Madagascar and the robust demand for the magnet rare earth metals we will produce. We have now gained two globally leading companies in our sector as commercial partners, ThyssenKrupp from Germany and Shenghe Resources from China. We are now extremely well positioned to become one of the globally leading suppliers of magnetic rare earths material used in fast growing technological applications, such as electric cars and in renewable energy.

Click here to read the full Tantalus Rare Earths AG (ETR:TAE) press release.

Tantalus Rare Earths AG (ISIN: DE000A1MMFF4) is a German holding company, which, through its subsidiary, holds a 100 % interest in a large ionic clay based rare earths exploration project in North West Madagascar. The shares of TRE AG are listed on the primary market of the Düsseldorf Stock Exchange, Germany. Bloomberg: TAEN GR; Reuters: TAEN.D.