Cummins Range joins forces with Newhaul

Cummins Range, a subsidiary of RareX (ASX:REE), has partnered with Newhaul to provide product haulage and logistical support for the Cummins Range rare earth and phosphate project.

A term sheet lays out the binding obligations to define forecast operational costs in support of definitive feasibility studies for the project and to reach a binding haulage contract before the end of FY24.

Furthermore, the terms bind Newhaul to immediately establish a special purpose vehicle (JV Co) to provide haulage services to the Cummins Range project and provide an option for Cummins Range to enter the joint venture by acquiring 50% of the shares in JV Co for $1 plus the value of the tangible assets of the JV (the option).

The option is exercisable subject to Cummins Range having entered a haulage agreement with JV Co and at least 500kt of product being hauled in any consecutive 12-month period. The option expires in 2030.

RareX chief executive James Durrant says the company is pleased to have partnered with Newhaul.

“Newhaul has a proven operational track record and their commitment to indigenous employment and sensitive, efficient and data-driven operations is impressive and strongly aligned to the values of the team at RareX,” he said.

“We look forward to a strong relationship extending well into the future.”

RareX already has an off-take memorandum of understanding for the initial overburden rock phosphate product which is being converted into a binding contract. The off-take process for the main dual-mineral concentrate is underway.

With approvals for the overburden project being submitted in 2024, mining of the rock phosphate is scheduled to begin in late 2025 before the construction of a beneficiation plant in 2028.