GR Engineering Services says it has entered into a binding term sheet with Yangibana Pty Ltd, a wholly-owned subsidiary of Hastings Technology Metals Limited, for the engineering, procurement and construction (EPC) of the beneficiation plant and associated infrastructure for the Yangibana rare earths project in Western Australia.

The project is approximately 250 km north east of Carnarvon.

Hastings said the plant will have a feed capacity of 1 Mt/y and a rare earth concentrate output capacity of 35,000 t/y of rare earth mineral concentrate at a grade of 27% total rare earth oxides.

GR Engineering and Hastings have agreed the material terms of the EPC contract in the binding term sheet. The EPC contract for the works will be finalised shortly and GR Engineering will commence early works. If the EPC contract is entered into, it is expected that the contract sum, including provisional sum, will be A$210 million ($140 million).

Tony Patrizi, Managing Director of GR Engineering, said: “GR Engineering is pleased to have received the binding term sheet for this world-class rare earths project in the Gascoyne region of Western Australia. It will be exciting to work on this project as it is focused on globally critical minerals that are used as key components for electric vehicles and wind turbines.”