VHM (ASX:VHM) has signed a letter of interest (LOI) with Mitsui & Co (TYO:8031) for the supply of heavy mineral concentrate from its Goschen Project in Victoria, Australia. The LOI establishes a framework for both parties to work towards a proposed agreement, allowing VHM to sell and Mitsui to purchase 40% of the heavy mineral concentrate produced. The agreement will observe a three-year term, commencing from the start of production.
VHM is a rare earth and mineral sands company focused on developing its Goschen Project, a tier one integrated project slated for production in Q4 2026. Mitsui & Co is a global trading and investment firm operating in over 60 countries with a diverse business portfolio. According to the LOI, Mitsui may propose a trade finance facility to VHM, subject to due diligence, to support the potential transaction.
Mitsui has also expressed interest in expanding its business relationship with VHM. VHM’s CEO, Ron Douglas, stated that partnering with a global company like Mitsui provides a long-term offtake for its heavy mineral concentrate and a strategic funding facility.
The Goschen Project is strategically important for VHM, and this agreement with Mitsui marks a significant step towards its development and future production.
