VHM ends Shenghe offtake deal to boost flexibility, appoints Macquarie Capital, and advances Goschen rare earths project toward 2027 production.
VHM has formally ended its offtake agreement with Shenghe Resources relating to the Goschen Rare Earths and Mineral Sands Project in Victoria, citing the failure to satisfy several conditions precedent outlined in the original agreement. The decision marks a strategic reset for VHM as it seeks to strengthen its long-term development pathway and enhance commercial flexibility for one of Australia’s emerging critical minerals projects.
According to VHM, multiple contractual requirements necessary to progress the offtake arrangement were not fulfilled within the agreed timeframe, prompting the company to exercise its termination rights. While the company did not disclose specific unmet conditions, it emphasized that the termination was a deliberate and proactive move designed to protect shareholder value and avoid constraints that could limit future commercial opportunities.
VHM stated that ending the agreement significantly increases its optionality, allowing it to engage more broadly with a wider pool of potential global partners. This approach aligns with the company’s overarching strategy to unlock greater long-term value by remaining unencumbered in a rapidly evolving critical minerals market. With global demand for rare earth elements accelerating—driven by electric vehicles, renewable energy systems, and advanced technologies—VHM believes flexibility is critical to securing competitive offtake and partnership structures.
To support the next phase of commercial discussions, VHM has appointed Macquarie Capital as its financial advisor. Macquarie Capital will lead engagement efforts with prospective offtake partners, strategic investors, and development collaborators for the Goschen Project. The appointment underscores VHM’s intention to pursue high-quality counterparties capable of supporting both project financing and downstream market access.
VHM reaffirmed that it remains on track to commence initial production of rare earths and mineral sands concentrates from the Goschen Project by the end of 2027. Importantly, the company confirmed that all of its future rare earths concentrate output is currently uncommitted, providing a clean slate for new offtake negotiations. This positions VHM to respond to changing market dynamics and potentially secure improved commercial terms compared with earlier agreements.
The Goschen Project is located in the Loddon Mallee region of Victoria and represents a significant development opportunity within Australia’s critical minerals sector. VHM continues to advance the project with a focus on responsible development, supply chain resilience, and alignment with global efforts to diversify rare earth supply away from concentrated markets.
By terminating the Shenghe offtake agreement, VHM has reinforced its commitment to maintaining strategic independence while it progresses technical, commercial, and financing activities at Goschen. The company believes this approach will enhance its ability to secure long-term partnerships that better reflect the project’s value and the growing importance of rare earths and mineral sands in global energy transition supply chains.
