Mozambique: Altona Rare Earths announces Monte Muambe scoping study results – Watch

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Mozambique: Altona Rare Earths announces Monte Muambe scoping study results – Watch

4:40 CAT | 18 Oct 2023

File photo: Altona Rare Earths

Altona Rare Earths Plc announced the positive outcome of its Scoping Study for its Monte Muambe rare earths project in northwestern Mozambique (the “Project”), and the publication of an updated Competent Person Report.

Results of the Scoping Study provide an encouraging initial validation of the Project’s potential, with highlights including:

Post-tax NPV 8 of USD 283.3 million;

Post-tax IRR of 25%;

Payback from first production: 2.5 years;

Production of 15,000 tonnes per annum, on average, of Mixed Rare Earth Carbonate (“MREC”), at an average price of USD 13,558.4 per tonne of MREC;

18 years Life of Mine (“LoM”);

Open pit mining operation, 750,000 tonnes of ore extracted and processed per annum;

Two stage recovery process, consisting of comminution and flotation, followed by hydrometallurgy;

LoM EBITDA of USD 1.67 billion; Initial Capex of USD 276.3 million.

The Monte Muambe Scoping Study takes into consideration open-pit mining of Target 1 and Target 4, at a LoM strip ratio of 1.6, over a period of 18 years.

An anticipated 750,000 tonnes of ore per annum will be extracted and processed through a beneficiation plant to produce a Rare Earths concentrate.

The beneficiation process will include crushing, milling and flotation. The concentrate will then be processed through a hydrometallurgical plant to produce an average of 15,000 tonnes of MREC per annum.

The hydrometallurgical process will involve a weak acid gangue leach, followed by rare earths leaching and purification.

The MREC product would be packaged and transported via existing road infrastructure to the port of Beira, in Mozambique, for export.

The Scoping Study demonstrates the potential for Monte Muambe to become a viable mining operation.

Considerable upside potential has been identified in the Scoping Study and will be developed further in the Prefeasibility Study (“PFS”). This includes:

Increase of the resource base, as well as of the LoM and/or ore extraction rate;

Mining parameters optimisation;

Processing and metallurgy, both for the beneficiation and hydrometallurgical plants;

Energy sources mix and logistics options;

Evaluation of the possibility of doing further onsite, in-country or regional separation and refining; and

Setting up Responsible Sourcing systems.

The publication of the Scoping Study marks the end of Phase 2 of the Project Farm-Out Agreement and entitles Altona to an additional 31% ownership in Monte Muambe Mining Limitada, the Project’s special purpose vehicle, taking its total current holding to 51%. Contractual and administrative processes have already been initiated to implement this change and a further announcement will be made when this has been completed.

The Project is now entering Phase 3, which upon completion will allow the Company to increase its holding to 70%, with the key deliverable being the PFS. Preliminary PFS activities started in July this year, in the form of in-fill drilling at Target 4 and these will ramp up over the course of the coming months, with additional exploration, planning and consultant services procurement activities, as well as a strong focus on additional metallurgical test work. The Company intends to also apply for a mining concession during Phase 3.

Cedric Simonet, CEO of Altona, commented: “For Altona, the Monte Muambe Scoping Study is a significant milestone. This key deliverable serves as an affirmative initial validation of the Project’s economic viability, enabling the Company to establish its presence amongst other prospective REE producers in Africa. It provides, together with the Mineral Resource Estimate (“MRE”), a solid foundation for the Project’s subsequent progression.

“As the Project moves into its PFS stage, the Company will continue to work towards de-risking Monte Muambe and, with its local partners, to optimise its technical, commercial and financial parameters. We believe the timing for this achievement is impeccable, at a time where the global rare earths supply chain is diversifying away from China’s decades-long domination, and Western processing facilities are starting to come online.

“The magnet metals present at Monte Muambe (and representing 90% of the Project’s future revenue) are critical components of the global green energy transition. The supply deficit for Neodymium and Praseodymium Oxide is forecast to grow to 90,000 tonnes per year by 2040(7) and, to allow the decarbonisation of energy sources, more magnet metals mines must come on stream in the following years.

“Altona intends to play its part in supporting this crucial agenda, by working in a responsible manner to reduce the dependence on China for critical mineral supplies.”

.@AltonaRareEarth has announced the positive outcome of its Scoping Study for its Monte Muambe rare earths project in northwestern Mozambique.

Read here – https://t.co/EfTrtnqI1H #REE #Mozambique pic.twitter.com/phGbGqIetT

— focusIR (@_focusIR_) October 18, 2023