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Metallium and Glencore Join Forces for E-Waste Recycling

In a recent significant development, Metallium Limited (ASX: MTM; OTCQX: MTMCF) announced their U.S. subsidiary, Flash Metals USA Inc., has finalized a Memorandum of Understanding (MOU) with Glencore plc. This agreement marks a substantial milestone in the electronic waste recycling sector, as Glencore stands as one of the largest and most influential resource management companies worldwide.

The MOU Framework

The executed MOU is designed to establish a framework for potential long-term collaboration between Metallium and Glencore regarding the supply of electronic scrap and the offtake of recycled metals in the United States. This agreement, effective immediately, lays the groundwork for further negotiations, which aim to culminate in definitive agreements before the year-end.

A Shared Vision

Michael Walshe, the Managing Director and CEO of Metallium, expressed enthusiasm about the partnership, emphasizing that collaborating with Glencore provides Metallium with a critical supply line. The partnership is set to secure essential feedstock to meet a significant portion of Metallium’s first-phase operation requirements. Walshe outlined the vision of aligning with a powerhouse in global recycling to establish a network of facilities near major electronic waste collection hubs and data center corridors.

Key Benefits of the Partnership

The MOU encompasses several crucial aspects:

• - Feedstock Supply: Glencore is positioned to become a key supplier of feedstock for Metallium's inaugural commercial facility. This ensures a steady inflow of materials necessary for recycling processes.

• - Technical Assistance: Alongside supply, Glencore will offer technical expertise for assessing incoming feedstocks, which aids in the refining and processing of materials.

• - Offtake Agreement: Glencore stands to purchase up to 75% of Metallium’s production of recycled marketable products, including important commodities such as metals, metal chlorides, and metal hydroxides. However, it should be noted that Metallium will maintain the flexibility to manage its marketing strategy for high-value niche products such as gallium, germanium, and rare earth elements independently.

• - Exclusivity in Negotiation: Under this MOU, Glencore will hold exclusive negotiation rights regarding contractual agreements on offtake volumes, streamlining the process of formalizing their collaboration.

Glencore’s Expertise in E-Waste Recycling

Glencore has established itself as a leader in the field of e-waste management, operating one of North America’s largest electronic scrap processing facilities, the Horne Smelter in Quebec. This facility has been operational since the mid-1980s, showcasing Glencore’s enduring legacy and capacity to recycle around 100,000 tons of e-waste annually. The breadth of Glencore’s operations across 35 countries underlines their position as a key player in the circular economy, focusing on sustainability, recovery of valuable resources, and environmental responsibility.

Metallium’s Vision for the Future

Metallium, innovative in its approach to metal recovery, utilizes patented technologies aimed at minimizing carbon footprints and enhancing efficiency. The company is on the brink of commercializing its Flash Joule Heating technology, which can recover critical metals from various waste sources, reinforcing the strategic supply objectives of the U.S. market. The selection of Texas for their first commercial site underscores a significant step towards achieving operational milestones and contributing to revenue generation.

In conclusion, the partnership between Metallium and Glencore not only promises to bolster Metallium’s operational capabilities but also showcases a committed approach to enhancing e-waste recycling in the U.S. with significant implications for sustainability and resource recovery moving forward.