VHM signs offtake framework with Mitsui for Goschen HMC supply
ASX-listed VHM has signed a non-binding letter of interest (LoI) with Japanese trading giant Mitsui & Co for the potential supply of 40% of the heavy mineral concentrate (HMC) production from its Goschen project in northwest Victoria.
The LoI outlines a framework for a proposed offtake agreement and contemplates that Mitsui may, at its discretion and subject to due diligence, propose a trade finance facility to support the transaction.
“The partnering with Mitsui, a globally significant Japanese counterparty, not only provides VHM with long-term offtake for its HMC, it also provides a strategic funding facility,” said VHM CEO Ron Douglas. “VHM looks forward to establishing a long-term relationship with Mitsui.”
Under the LoI, the initial term for the proposed offtake is three years from the start of production. While the agreement is currently non-binding, both companies have signaled interest in formalising terms through a definitive supply agreement.
The Goschen project is a fully owned, Tier 1 rare earths and mineral sands development, with primary project approvals secured in December 2024 and a mining licence granted in April 2025. Secondary permitting is progressing, with first production targeted for the fourth quarter of 2026.
The dual-commodity asset will produce both rare earths and mineral sands, including zircon and titanium, through a staged development strategy. The project is designed for shallow-pit mining and conventional processing and benefits from 100% ownership of the required land.
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