Commodity trader and merchant Traxys has entered into a nonbinding memorandum of understanding (MoU) with ASX-listed Energy Transition Minerals (ETM) for the offtake of up to 100% of the tin, tantalum and niobium concentrates produced at the Penouta mine, in Spain.

ETM is in the process of completing the acquisition of the Penouta mine, which operated as recently as October 2024 as the EU’s only direct source of tin, tantalum and niobium – metals that are foundational to modern industry and national defence and that are included in the critical minerals lists of the US, the EU and Australia.

The Penouta mine, as one of the few Western sources of all three minerals within a single operation, occupies a rare and strategically significant position in the global critical minerals landscape, says ETM.

“We are delighted to partner with Traxys as the preeminent trading partner in the critical minerals space. In particular, their proven experience in the tin, tantalum and niobium market, as well as established presence in the EU, is expected to deliver significant value to the Penouta mine over its lifetime. We are excited not only by Traxys’ strong trading credentials but also its unique ability to offer and/or solicit potential funding benefits for Penouta,” comments ETM MD Daniel Mamadou.

“Traxys is excited to partner with ETM as we seek to create value for all stakeholders from the agreement on Penouta, as well as explore other offtake, funding and development opportunities in ETM’s project pipeline. Our experience in the 3T [tin, tantalum and tungsten] markets and record with the Penouta mine will pave the way for a successful cooperation for years to come.

"Traxys is proud to be a critical minerals supplier for Project Vault, aimed at bolstering America’s critical minerals supply chain and national security,” adds Traxys chairperson Alan Docter.

Under the terms of the 12-month MoU, Traxys will have the exclusive right to market, distribute and sell products mined at Penouta to end-consumers, but sales to consumers will be subject to ETM's consent.

Further, Traxys and ETM plan to finalise binding documentation for offtake from the mine for six years from first production.

The parties will also evaluate both direct and third-party funding opportunities, being both the introduction of potential debt or equity investors directly into Penouta and/or ETM, as well as a potential investment by Traxys in this regard.