I think the crux issue that many may have been misguided in their interpretation is that this MOU somehow means Chinalco is/will control IXR.
Reality is it's quite the opposite. With depleting levels of IAC domestically, china(chinalco) would love to own IXR as it needs economical sources of HREO. Noting china also lobbed at NTU (whom has the unique Dy heavy basket and not the NdPr LREO ME2 product most are offering). When you have something someone else wants you have the leverage. Negotiation 101.
Well what do chinalco have that IXR want? I'll answer - Unparalleled understanding of how to build, process operate, market IAC deposits and rare earths in general.
In my honest opinion, i think IXR is going to leverage chinalco more than they will will get from us in the next 12months. In return, yes we may return the favour in the short term and you can purchase some of our product. Perhaps an agreement of 1000-2000tpa with option to increase. (Noting our capacity might be 4000tpa.
There's really no actual control without any investment, and when we're talking capital finance in the realms of 50-70m USD IXR can choose absolutely anyone for that. No obligation for chinese money, nor chinalco's for that matter.
If your Tim Harrison, you're playing cards close to your chest and exploiting everything possible from this relationship whilst you perform the most critical part of the development as the BFS is constructed. It's more important to get it right, that it is having a dead weight western partner which is good for nothing other than retail investors to froth at. Whilst i'd love for their to be offtakes signed externally to china (maybe in 2025 when those sep plants are built) there will be.
So you can either; live in reality that 95% of REO concentrates will end up in china or hope that other sep plants get built and people operate them economically. (Still a risk given how poor lynas went).
The chinese only invest in decent projects so it probably speaks of paramount importance that they've angled towards us over the rest. What does that tell you?
Also regarding offtakes. Again, there is slim to nil commercial REO separation capacity outside of china which would be able to take our volumes given the fastrack to production. REEtec with VML has industry demo scale plant - i assuming they're full cannot find details to it's annual capacity but in 3-5Y time when VML need to bring on its 1.5% grade (not the 10% it will run out of in 3Y) then they will need that Sep plant to increase IMHO. PM8 is angling it's separation to Saltend (unbuilt, no DFS etc etc when will it be in operation?), Lynas is full to the boots and already sending product to china for seperation (IMO).
The way some have reacted regarding offtakes is as if there's a 100 separation plants sitting in australia with empty tanks just waiting for some REO to process.
If anyone has got the number of separation facility with 5000tpa of concentration at 95% separation capacity which will be at nameplate by 2023 feel free to send their number to IXR - If not probably best to remain in the armchair. Even if lynas had capacity why would you send it to the clowns that could get it economical in a 10year period. again i hold reserved judgement in the ability of the others.
BHP/RIO/FMG do just fine selling their products to china an offtake agreement with IXR to chinalco is absolutely no different.
If any of the western world was serious they'd have picked up the phone previously or are one of the 'already interested parties' probably wanting to get their own MOU.
The only way chinalco or anyone else controls IXR is if they buy/invest and Tim allows it. Otherwise they will be forced to attempt to buy it on market. Who will that benefit? A: Shareholders.
(20min delay)