Hastings Technology Metals Limited (ASX:HAS) has signed a non-binding Memorandum of Understanding with the Ministry of Investment of Saudi Arabia (MISA) for the development of an integrated rare earths downstream processing supply chain within the country.

The MOU was organised as part of MISA’s Global Supply Chain Resilience Initiative program – valued at SAR 35 billion (or US$9 billion or A$14 billion) – with Hastings named as one of nine selected parties.

The program reflects the Kingdom of Saudi Arabia’s desire to break away from its traditional reliance on oil revenue – as laid out in its ‘Vision 2030’ plan – with the focus now on high tech industry, unlocking downstream opportunities, jobs and skill upgrading, and research and development.

The MOU outlines a framework to guide Hastings in the development of a fully integrated downstream rare earths processing facility, with the support of MISA.

Hastings had already set out a two-stage plan to develop its Yangibana Rare Earths and Niobium Project, with stage one involving the construction of a Beneficiation Plant at the mine site in Western Australia, and stage two including the construction of a hydrometallurgical plant.

For the latter, the company aims to look at various sites, including Onslow in WA, Estonia and in the Kingdom of Saudi Arabia.

The MOU will enable Hastings to refresh its Bankable Feasibility Study, with consideration of the Hydrometallurgical Plant in the KSA, as well as securing strategic Joint Venture partners, facilitating the development and signing of a Joint Venture Agreement to develop the plant and securing KSA-based funding.

Hastings Executive Chairman Charles Lew said this was an important step for the company.

“Hastings is pleased to have signed the MOU with MISA as the company continues to progress its two-stage development strategy at Yangibana as part of our vision to create an integrated mine-to-magnet supply chain,” he said.

“Hastings looks forward to working with the Saudi Government to assess plans for the construction of a Hydrometallurgical Plant and downstream facilities in the KSA as well as working to secure KSA JV Partners and development financing support.”

Hastings has been trading at 28 cents.

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