VHM has signed a non-binding term sheet with Mitsui for the purchase of heavy mineral concentrate (HMC) from VHM’s Goschen rare earths and mineral sands project in Victoria, Australia.
The agreement covers up to 65,000t per annum (tpa), representing 50% of the Goschen Project’s HMC production.
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Under the proposed arrangement, the offtake would run for three years from the start of production, with an option to extend for an additional three years if both parties agree.
Pricing is expected to follow a market-linked formula based on prevailing zircon and titanium dioxide prices, with sales on a free on board basis at an Australian port.
VHM and Mitsui are currently working to finalise a binding offtake agreement, following this detailed non-binding term sheet and a previously announced non-binding letter of interest.
The companies are also discussing the possibility of Mitsui offering a trade finance facility to VHM, subject to due diligence. This finance feature is also noted in their earlier correspondence.
The term sheet is part of VHM’s broader strategy for project development, marketing and funding at Goschen.
According to VHM, the arrangement could provide the company with commercial flexibility regarding product delivery and sales, as well as support with cash flow management.
Discussions between VHM and Mitsui are ongoing concerning the potential for increasing the volume under offtake, with the aim of securing commitments for up to 100% of Goschen’s HMC output.
VHM CEO Andrew King said: “The execution of a detailed non-binding term sheet with Mitsui is a significant milestone for VHM and provides validation of the scale and strategic importance of the Goschen Project.
“Building on the strong relationship established through our previously announced letter of interest, this proposal provides a clear pathway towards securing a cornerstone HMC customer while also introducing the potential for valuable funding support through working capital and trade finance solutions.”
In July 2026, Iluka Resources signed an 18-year agreement with VHM for the supply of rare earth concentrate from the Goschen Project.
