Alkane Resource’s flagship Dubbo Zirconium Project moved closer to production after the company announced a Memorandum of Understanding (MOU) between its wholly owned subsidiary Australian Zirconia Ltd. and German engineering and technology giant Siemens AG.
The MOU, a nonbinding and nonexclusive agreement for three years, “details Alkane’s and Siemens’ joint intention to enter into separate agreements for the purpose of progressing and implementing business opportunities such as offtake agreements for DZP product (e.g., rare earth products, specifically those related to the production of NdFeB permanent magnets, as well as the rare metals niobium, zirconium, and hafnium in oxide, alloy or finished form),” stated Tom Hayes in an Oct. 25 research report on Alkane Resources Ltd. (ALK:ASX; ANLKY:OTCQX) for Edison Investment Research.
For its part, Alkane will have access to Siemens’ “advanced infrastructure management systems, process automation solutions, power solutions, mechanical plant and services and product lifecycle management (including asset management, service and maintenance of systems supplied),” Hayes wrote.
According to an Alkane press release issued Oct. 25, “This agreement presents another substantial step forward in the development of the world-class Dubbo Zirconia Project, which can become a significant non-Chinese supplier of several critical metals.”
Alkane is working in the Central West region of New South Wales, Australia, where it has two projects, the Tomingley gold project and the Dubbo project. According to the company’s release, “financing is in progress [for Dubbo] and this project will make Alkane a strategic and significant world producer of zirconium, hafnium and rare earth products when it commences production in 2018.”
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1) Tracy Salcedo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She owns, or members of her immediate household or family own, shares of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
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