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US company NioCorp Developments placed all planned critical-minerals production from its Elk Creek, Nebraska project under commercial sales arrangements for the first 15 years of operations after signing a definitive agreement with trading company Traxys North America, the company announced Tuesday October 13.
Under the binding agreement Traxys will purchase 50% of NioCorp’s planned ferroniobium production. Traxys will also have the exclusive right to purchase NioCorp’s planned scandium, titanium and rare earth products as well.
The company expects to produce 8,095 tonnes per year of ferroniobium, 118 tonnes per year of scandium oxide, 59,890 tonnes per year of titanium tetrachloride, 672 tonnes per year of Neodymium-Praseodymium (NdPr) oxide, 67 tonnes per year of dysprosium oxide and 17 tonnes per year of terbium oxide.
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Under the agreement, Traxys will be “NioCorp’s exclusive global marketing and sales partner,” according to the Tuesday press release.
The new deal replaces previous arrangements between NioCorp and Traxys.
NioCorp’s prior offtake deal with thyssenkrupp Metallurgical Products, which covers the remaining 50% of ferroniobium produced for the first 10 years, remains unchanged, the company said.
“Together with our existing ferroniobium offtake agreement, every product we plan to produce at Elk Creek is now supported by long-term commercial agreements for 15 years of operations with highly reputable commercial partners,” NioCorp chief executive Mark Smith said in the press release.
NioCorp signed a memorandum of understanding with defense company Lockheed Martin for the potential purchase of 15 tonnes per year of scandium oxide or aluminium-scandium alloy over a 10-year period, the company announced in August.
The companies are still in talks for $30 million in a strategic equity investment into NioCorp, the press release stated.
NioCorp to supply Project Vault through partnership with Traxys
The agreement links NioCorp with Traxys’ customer network and its participation in the US government’s Project Vault initiative. Project Vault seeks to create a civilian stockpile of essential raw materials and began with an up to $10 billion direct loan from the EXIM Bank and a $2 billion loan from private industry.
“As a key participant in President Trump’s Project Vault initiative, Traxys is focused on helping build stronger domestic critical mineral supply chains by connecting emerging producers with manufacturers seeking dependable long-term supply,” Traxys chief executive Mark Kristoff said in the release.
“That’s exactly why we’re expanding our relationship with NioCorp through this agreement, and we look forward to bringing Elk Creek’s products to customers across North America and allied markets in the future.”
Traxys and other US trading houses will provide sourcing, logistics and capital to Project Vault.
Project Vault became operational in September.