Iluka Resources has signed an 18-year agreement with VHM for the supply of rare earth concentrate from the Goschen project in western Victoria, Australia.
Under the terms of the contract, VHM will supply 146,000t of concentrate containing 86,000t of rare earth oxides (REOs) to Iluka.
This equates to an average of approximately 8,320 tonnes per annum (tpa) of concentrate, containing around 4,900tpa of total rare earth oxides.
The concentrate is intended to serve as feedstock for Iluka’s Eneabba rare earths refinery, which is currently more than 50% complete.
The Eneabba facility is set to reach the commissioning stage in mid-2027.
Iluka noted that final production levels at the refinery will depend on the blend of internal and external feedstocks as well as operational constraints.
In addition to the supply agreement, Iluka has been granted a right of first refusal over any additional rare earth material produced at Goschen, as well as from VHM’s earlier-stage Cannie and Nowie projects.
Iluka intends to support the development of the Goschen deposit by providing VHM with a secured convertible note worth A$40m ($27.6m).
The funding will be delivered in two stages, beginning with an initial A$10m and followed by an additional A$30m once a final investment decision is made as part of the overall construction funding package.
Pricing for the rare earth concentrate will be determined using a mechanism linked to the price Iluka achieves for the sale of its rare earth products from the Eneabba refinery.
Iluka managing director Tom O’Leary said: “Iluka’s agreement with VHM marks another step in the development of our rare earths business and Australia’s rare earths industry.
“It follows recent milestones including Iluka’s inaugural offtake agreement for rare earth oxides produced at the Eneabba refinery; and the award of the final contract to complete the refinery’s construction.”
In August 2025, Iluka entered into a strategic partnership with Lindian Resources to develop the Kangankunde rare earths project in Malawi.
