The contract calls for a total quantity of 18,000 metric tons over a period of five years, but the supply could increase
Canada Rare Earth Corp (TSX-V:LL) said the first shipment of rare earth concentrate from a new supplier is in transit to its customer base.
The company said this was the first shipment of a minimum of 60 shipments planned over the five-year period.
The contract, signed on September 3, 2021, covers a total quantity of 18,000 metric tons. However, the company and the supplier are working together to increase this quantity through larger and more frequent shipments.
READ: Canada Rare Earth responds to urgent demands from international companies and national governments for reliable supply
“We are very excited about this initial expedition which marks the beginning of a fruitful relationship over several years. We are confident that together with the supplier, we will increase shipments to meet our customers’ demand,” said Canada Rare Earth. COO Peter Shearing in a statement.
Canada Rare Earth said its strategy calls for growing its supply base of rare earths and critical minerals through proprietary holdings and various third-party agreements.
The company added that it views this particular contract as an important part of its efforts to diversify its sources of concentrate, as it will increase supply from its proprietary properties, such as the Bom Futuro tailings stock in Brazil, which is currently in development.
Canada Rare Earth is developing a vertically integrated international business within the global rare earth industry.
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