MoU with metals giant paves Hyperion’s way for mega zircon deal

Hyperion has reached a non-binding memorandum of understanding (MoU) for the supply of zircon products to Spanish raw materials giant Mario Pilato.

Under the agreement, the two companies will start negotiations on a supply agreement with an initial five-year term for up to 20,000 tonnes per annum of zircon products from Hyperion Metals’ (ASX:HYM) Titan project at an agreed market-based pricing methodology.

Good math

This is potentially very lucrative given that the benchmark price for zircon has seen significant increases, rising about 40% since the first quarter of 2021 to current pricing of over US$2,000/t.

Zircon demand has been climbing thanks to its use in new applications including additive manufacturing and semiconductors along with continued use in traditional applications such as ceramics, refractories and foundries.

Hyperion is currently completing a scoping study for Titan, one of the largest titanium, zircon, and rare earths minerals project in the US.

“We are excited to be working with Mario Pilato, an industry leader in zircon products, including the production of ceramics, to develop a long term supply agreement from the Titan project,” managing director Anastasios Arima said.

“The large scale and high quality critical mineral assemblage at the Titan Project, including the potential to produce significant quantities of high quality, high value zircon, provides the opportunity for the company to deliver compelling economics in our upcoming scoping study.”

Hyperion had previously reached a similar MoU with Chemours for the supply of up to 50,000 tonnes of ilmenite, 10,000 tonnes of rutile and 10,000 tonnes of staurolite per annum.

A critical minerals giant

Hyperion’s Titan project in Tennessee covers over 11,000 acres and has a current mineral resource of 431 million tonnes grading 2.2% total heavy minerals, which in turn consists of 11.1% rutile, 40.3% ilmenite, 2.1% rare earth elements and 14.8% staurolite.

Rutile is one of the highest grade sources of titanium while ilmenite is mined globally for the same metal.

This is significant – as the US is currently reliant on imports for 100% of its primary titanium metal for advanced industries such as electric vehicles and space exploration – and 92% of its titanium feedstock demand for paint and pigments.

This article was developed in collaboration with Hyperion Metals, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.