Peak Rare Earths Limited (ASX: PEK) (“Peak” or the “Company”) is pleased to announce
the signing of an offtake and strategic co-operation Memorandum of Understanding
(“MOU”) to support the development of the Ngualla Rare Earth Project (“Ngualla Project”) with Shenghe Resources (Singapore) Pte Ltd, a wholly owned subsidiary of global rare earths company, Shenghe Resources Holdings Co. (“Shenghe”).
Shenghe is a large Chinese rare earth group with operations spanning mining and
beneficiation, refining and separation, as well as alloy and metals production. Its international interests include an approximate 7.75% holding in MP Materials Corp (NYSE:MP), a 90% holding in Vietnam Rare Earth Company Limited, and a 9% holding in
Greenland Minerals Limited (ASX:GGG). Shenghe is listed on the Shanghai Stock Exchange (SSE: 600392.SS) and has a market capitalisation of approximately US$3.8 billion.
In the case of MP Materials, Shenghe has been a supportive major shareholder through
long-term offtake and strategic cooperation. MP Materials, which has a market capitalisation of approximately US$5.1 billion, currently produces approximately 70,000
tonnes per annum of a high-grade bastnaesite concentrate. Since the recommencement
of MP Materials’ Mountain Pass Project in 2017, Shenghe has been its sole offtaker and has provided support to the restart of Mountain Pass Rare Earth project.
Commenting on the MOU, the Executive Chairman of Peak, Russell Scrimshaw, said: “We are delighted to have signed a strategic and marketing MOU with Shenghe. Shenghe is uniquely positioned to assist Peak in the development of the world-class Ngualla Rare Earth Project. We believe that Shenghe’s successful co-operation with MP Materials, provides an excellent roadmap for our offtake, technical and strategic relationship moving forward.”
Commenting on the MoU, the CEO of Shenghe, Wang XIaohui, said: “The signing of this MOU marks an important step in the development of Shenghe’s strategic relationship with Peak and in progressing the Ngualla Rare Earth Project towards development. Shenghe regards the Ngualla Rare Earth Project as the premier undeveloped rare earth project in the world. We are keen to work closely with Peak in developing the project through a combination of offtake, technical and financial support.”
