Hastings scales rare earths ambitions with Thai plant expansion

In a show of confidence in the company’s downstream rare earths strategy, Hastings Technology Metals is set to double the planned output of its Thailand processing plant before major construction gets underway.

Hastings is now finalising plans to build a 12,000-tonne-per-year mixed rare earth chloride (MREC) plant, doubling the originally planned capacity. Rather than waiting to prove demand, the decision commits Hastings to a larger initial development.

Management believes strong customer interest and the project’s economics already justify building at a larger scale from the outset. Strong inbound interest from companies seeking binding offtake agreements for its MREC product reinforces that view.

The bigger plant is expected to lower unit costs by spreading fixed costs across higher output while avoiding duplicated capital expenditure and technical risk. Its modular design also allows the extra capacity to be incorporated into the initial build for an estimated US$3 million (A$ 4.3M), boosting profitability as demand materialises.

‘We remain focused on delivering first MREC production from an expanded plant in the first quarter of calendar year 2027.’

The decision will effectively bring forward the plant’s planned second-stage expansion, accelerating Hastings’ mine-to-market strategy. It transforms the Kabin Buri rare earths processing facility in Thailand into a significantly larger processing hub, initially treating third-party African monazite before the Yangibana rare earths project in Western Australia enters production.

The approach also creates a bigger, earlier revenue opportunity while preserving flexibility over future feedstock sources as the business grows.

Based on management’s indicative and unaudited estimates, the expanded plant could generate US$110.4 million (A$158M) in gross annual revenue and US$35.7 million (A$51.5M) profit before tax once operating at full capacity.

Subject to completing its acquisition of a 49 per cent stake in the Kabin Buri processing facility, Hastings’ share of annual pre-tax profit is forecast to increase from US$15.5 million (A$22.35M) in the first full year of production to US$17.5 million (A$25.2M) in subsequent years.

Hastings Technology Metals chief executive officer Vince Catania said: “Given the level of interest shown by companies to secure binding offtake agreements of our MREC, it strengthens the case for upsizing. Moving to a larger circuit as part of the overall build plan, rather than bolting on capacity later, gives us a stronger cost base without duplicating capital spend later down the track.”

The company has doubled its supply agreement with strategic partner Enuo Holdings from 5,000 tonnes to 10,000 tonnes per year of monazite concentrate, a rare earths-bearing mineral, securing feedstock for the larger plant.

The plant chemically cracks and leaches monazite concentrate into mixed rare earth chloride (MREC), an intermediate product for specialist rare earths separation plants.

It is one of the rare earth industry’s most technically demanding processing steps and, with only a handful of operators able to do it successfully, has become one of the sector’s biggest barriers to entry.

The substantially built Kabin Buri facility sits within Thailand’s Eastern economic corridor, providing access to established infrastructure, skilled labour and efficient export routes.

Former Lynas Malaysia hydrometallurgical engineer Rwi Hau Lim has been hired to oversee construction, commissioning and testing of the upgraded facility, drawing on experience gained at one of the few rare earths processing operations outside China.

The all-important structural steel is already on site ahead of August ground works and Hastings is seeking Thai Board of Investment incentives, including potential tax concessions.

The company’s bold move reflects growing Western demand for alternative rare earths supplies for electric vehicles, wind turbines, robotics and defence, creating opportunities for suppliers outside China such as Hastings.

First production remains targeted for the first quarter of calendar year 2027, subject to final documentation, engineering, contracting and regulatory approvals.

Meeting the fast-tracked production target looks set to establish Hastings as a rare earths’ processor, creating an early revenue bridge before the Yangibana rare earths project in Western Australia enters production. It would also position the company as an integrated mining and downstream processing business with the flexibility to optimise future feedstock sources as the business grows.

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