Saudi Arabia’s Ministry of Investment has signed a memorandum of understanding (MOU) with Australian mining company Hastings Technology Metals. This partnership marks a significant step toward establishing a rare earths processing supply chain in the Kingdom.
What Are Rare Earths?
Rare earths are a group of 17 elements crucial for manufacturing advanced technologies like electric vehicles, wind turbines, and smartphones. These minerals are difficult to mine and process, making them highly valuable in global supply chains.
The MOU aligns with Saudi Arabia’s Global Supply Chain Resilience Initiative (GSCRI), valued at SAR35 billion (USD 9 billion). This initiative aims to diversify the Kingdom’s economy under the Vision 2030 framework, reducing oil dependency and boosting high-tech industries.
Integrated Rare Earths Facility in Saudi Arabia
Hastings plans to develop an integrated downstream rare earths processing facility with Saudi support. This facility will focus on producing rare earth magnets to supply global markets, including Europe and the United States.
The partnership will support Hastings’ two-stage strategy for its Yangibana project. The first stage includes a beneficiation plant in Western Australia, currently 33% complete. The second stage involves building a hydro-metallurgical (HM) plant, potentially in Saudi Arabia.
Joint Venture and Funding Opportunities
Saudi Arabia’s Ministry of Investment will help Hastings refresh its feasibility study, provided the HM plant is located in the Kingdom. Additionally, the ministry will connect Hastings with joint venture partners and funding options, including the Saudi Industrial Development Fund. This fund can cover up to 75% of project costs and assist with legal and regulatory requirements.
Hastings’ Executive Chairman, Charles Lew, expressed optimism about the collaboration, highlighting the strategic value of a mine-to-magnet supply chain.
Advancing the Kingdom’s Industrial Goals
The MOU outlines a four-phase development plan, including constructing a hydrometallurgical plant and a rare earth oxide production facility. The final phase aims to source rare earth concentrates from Saudi mines, further enhancing the Kingdom’s industrial capabilities.
This agreement positions Saudi Arabia as a key player in the global rare earths market, supporting its Vision 2030 goal of industrial diversification.
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