Under the signed agreement, Tronox and JXAM (together "the Companies") will fund on a 50/50 basis approximately $32 million to support a definitive feasibility study for Tronox's previously announced proposed rare earth cracking and leaching facility ("Cracking Plant") in Australia and a pre-feasibility study for a proposed rare earth oxide refinery ("Refinery") in the United States and development of a US-based pilot facility capable of producing initial quantities of high-purity rare earth oxides. Tronox and JXAM anticipate that the joint investment in feasibility work for the Cracking Plant and Refinery will demonstrate the technical, economic, environmental, and commercial viability of establishing an integrated rare earth processing and refining platform. The agreement also contemplates joint development of other critical minerals and materials from Tronox's mineral resources, including niobium (Nb), scandium (Sc), zirconium (Zr), and hafnium (Hf), all of which are critical to the economic and national security of the United States and Japan.

The joint cooperation and investment agreement with JXAM represents a key milestone for Tronox in the development of its rare earth supply chain that could enable significant value creation. The agreement reflects the shared commitment of Tronox and JXAM to establish new capabilities across the critical mineral value chain while supporting the economic security and industrial competitiveness objectives of the United States, Australia, and Japan, including the Pax Silica Initiative.

The Companies plan to locate the Cracking Plant in the Rockingham Industrial Zone in Western Australia, approximately three kilometers south of Tronox's Kwinana TiO2 pigment plant, enabling shared services and other resources that can be leveraged due to Tronox's extensive footprint and infrastructure in Australia, where it employs more than 1,200 people at its existing operations. The Companies currently expect to locate the Refinery on Tronox-owned land adjacent to its existing Hamilton, Mississippi TiO2 pigment facility, where it employs more than 400 people. The site has access to abundant and low-cost power, existing utilities, reagents, and substantial infrastructure that Tronox expects would provide meaningfully lower refining costs versus a typical new entrant.

Together, as currently contemplated, the two sites would aim to produce up to 10,000 tonnes per annum of total rare earth oxides. Tronox's mines have an attractive mineralogy mix of light and heavy rare earth refinery feedstock, including neodymium (Nd) and praseodymium (Pr), dysprosium (Dy) and terbium (Tb), samarium (Sm), gadolinium (Gd), and yttrium (Y).