VHM Limited has terminated its previously announced offtake agreement with Shenghe Resources, signaling a strategic shift to maximise flexibility and long-term value in the booming critical minerals sector.

“This reflects VHM’s proactive strategy to unlock greater long-term value by being able to engage with a broad range of global partners in the critical minerals sector in response to inbound interest for offtake from the Goschen Rare Earths and Mineral Sands project,” the company said.

The Goschen Project, located in Victoria’s Loddon Mallee Region, is targeting first production of rare earths and mineral sands concentrates by the end of 2027. With the termination of the Shenghe deal, VHM now has 100% of its rare earths concentrate product available for offtake.

To accelerate new partnership discussions, VHM has appointed Macquarie Capital as financial advisor. “Macquarie Capital’s global reach and deep expertise in strategic transactions will assist VHM positioning the Goschen Rare Earths and Mineral Sands Project to maximise value to shareholders,” the company stated.

The move comes amid surging global demand for rare earths and critical minerals driven by energy transition, electrification, and advanced manufacturing. “VHM’s world-class Goschen Project is uniquely placed to supply these markets with high-quality products, and the Company is confident that this approach will enhance flexibility, strengthen margins, and create significant shareholder value,” the company said.

VHM reaffirmed its commitment to developing a sustainable, globally competitive operation and said it will provide further updates as discussions with potential offtake and project partners progress.