VHM Limited has signed a formal offtake agreement with Japan’s Mitsui & Co, securing a vital customer for rare earth and mineral concentrate production from its Goschen project in northwest Victoria. The deal strengthens VHM’s position as it works toward bringing the critical minerals project into production.
The arrangement gives Mitsui rights to purchase a significant portion of Goschen’s heavy mineral concentrate (HMC) output, which contains both rare earth elements and zircon.For VHM, this agreement isn’t just about selling concentrate. It also brings in a partner that could play a role in helping the company secure funding and get the project up and running.
Goschen Project, Australia. CREDIT: VHM
What’s in the Deal
The arrangement with Mitsui follows on from an earlier letter of intent between the two companies. The final agreement now sets out the terms under which Mitsui will buy mineral concentrate from the Goschen project once production begins. Under the finalised agreement, Mitsui will take delivery of HMC from Goschen’s first production phase.
The partnership also includes provisions for Mitsui to offer trade finance assistance — a tool that could help VHM manage working capital needs as it ramps up operations. While specific tonnages and pricing have not been disclosed, VHM has confirmed that the deal covers a substantial share of Goschen’s planned output during its early years.
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Why Goschen Matters in Critical Minerals
Located near Swan Hill, the Goschen project is one of Victoria’s leading rare earths developments. The Goschen site in Victoria is set to produce rare earth elements alongside zircon. Rare earths are important for technologies like wind power and electric vehicles, while zircon has its place in industries like ceramics and foundries.
VHM has already secured a mining licence for Goschen. The company has also made progress on environmental and engineering work. The new deal with Mitsui gives the project added commercial support at a stage where financial backers want to see both technical readiness and market demand.
What Mitsui Brings
For Mitsui, this agreement fits with Japan’s aim to reduce reliance on Chinese rare earths. By linking up with companies like VHM, Mitsui can help secure supply from new sources.
Mitsui’s involvement goes beyond simply purchasing material. The company is offering trade finance that can give VHM working capital linked to its concentrate sales — an approach that can ease early-stage funding pressure. This arrangement reduces VHM’s reliance on traditional debt at early stages, which can be challenging to raise for new mining projects.
Goschen project site plan with processing plant and pit layout. Credit: VHM
Supporting Victoria’s Critical Minerals Push
The deal between VHM and Mitsui is also a win for Victoria’s ambition to build a local critical minerals supply chain. State officials have been encouraging projects that can position Victoria as a reliable supplier of materials vital for decarbonisation and advanced manufacturing.
By locking in an offtake partner like Mitsui, VHM demonstrates how local projects can link into global supply chains — a key aim of government strategies to grow the sector.
Financing and Next Steps
The Mitsui agreement gives VHM a stronger foundation as it moves to secure full project funding. Final investment decisions at Goschen will depend on a combination of equity, debt, and offtake-linked finance.
VHM is also progressing detailed engineering work, contractor selection, and permitting. VHM is expected to share more updates soon as it moves closer to starting work on site. This will likely include news about contracts, financing progress, and timing for construction.
Why This Deal Matters
The agreement between VHM and Mitsui shows how important offtake partnerships are for getting critical mineral projects moving. Rare earth developments come with big upfront costs, and companies need to show that there’s steady demand beyond the first few customers.
Deals like this one help smaller producers show investors and lenders that their projects have a market — and that can make all the difference when it comes to raising the funds needed to build.
Analysts say partnerships with established trading houses like Mitsui provide smaller producers with both market access and financial support — key factors in turning plans into production.
One mining sector observer noted:
“This is the kind of deal that helps emerging projects move from planning to reality. Without offtake support, raising capital at scale is hard. These agreements show investors there’s real demand.”
A New Chapter for VHM
With Mitsui now locked in, VHM’s focus will shift increasingly to delivery. The company will need to demonstrate progress on-site and maintain momentum with stakeholders as it heads toward construction.
The partnership signals confidence not only in Goschen, but also in Victoria’s growing role as part of the global rare earths supply chain.
