Mozambique joins list of potential rare earth suppliers in Africa

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Mozambique joins list of potential rare earth suppliers in Africa

2:09 CAT | 20 Oct 2025

Figure 1 (Left): A pan showing heavy mineral concentrate (HMC) from hand auger drilling hole 17 in alluvial material within Adriano (11002L). Figure 2 (Right): A primary pegmatite vein outcropping as a bedrock bar in the riverbed. [Image: MRG Metals]

MRG Metals finds potential rare earth deposit in Mozambique

Discovery adds to growing global interest in African rare earths

Mozambique seen as key alternative to China’s supply dominance

Australian junior miner MRG Metals Limited announced on Friday, Oct. 17, the discovery of a “potential alluvial rare earth deposit” in Mozambique. While the preliminary finding requires further exploration, it highlights the East African nation as a promising hub for the group of metals whose global supply is heavily concentrated in China.

Drilling conducted by MRG at the Adriano site in Sofala province yielded significant concentrations of heavy minerals. The company noted that these efforts follow an earlier sampling campaign that revealed up to 32,393 parts per million (ppm) of Total Rare Earth Oxides (TREO). As a sign of its growing interest in Mozambique’s potential, MRG stated it has submitted license applications for additional areas in the country.

“With clear next steps in place, we’re well positioned to move from early-stage sampling to defining a resource that can create long-term value for shareholders,” said Andrew Van Der Zwan, MRG Chairman.

The preliminary results at Adriano coincide with another promising project in the country: Monte Muambe, led by the UK’s Altona Rare Earths. Altona’s exploratory study, published in October 2023, indicated that a future mine could deliver an average of 15,000 tonnes of mixed rare earth carbonate per year over an 18-year life. That project, currently in the pre-feasibility study phase, showed an estimated after-tax Net Present Value (NPV) of $283 million and an Internal Rate of Return (IRR) of 25%.

While awaiting the start of commercial operations at that deposit, Mozambique already supplies a small amount of monazite, a rare earth-containing mineral, through the Moma mine operated by Kenmare Resources.

With China controlling approximately 37% of global reserves and 90% of refining capacity, Beijing largely dominates the value chain for these metals, which are essential for electric vehicles, defense, and wind energy industries. As China uses this dominance as leverage in its trade rivalry with the United States, Washington and the European Union are increasingly seeking alternative sources. By developing its resources, Mozambique can help strengthen Africa’s rare earth supply.

According to Benchmark Mineral Intelligence (BMI), eight African rare earth projects are expected to enter production by 2029, spanning Tanzania, Angola, Malawi, Uganda, South Africa, and Mozambique. The continent, which currently produces no neodymium or praseodymium, could account for approximately 9% of global supply within four years.

MRG Metals (#ASX: $MRQ) has identified a potential alluvial rare earth deposit at its Adriano Project, where field mapping has also revealed possible primary source rock.

All 17 auger holes intersected heavy mineral concentrate, with assays to follow upon completion of the next… pic.twitter.com/ASPeiC5IV9

— MRG Metals (@mrg_metals) October 20, 2025

MRG Metals (#ASX: $MRQ) has reported that drilling at the Adriano Project has identified a potential alluvial rare earth deposit, while field mapping has uncovered a possible primary source rock.

Key Highlights:

✅ All of the 17 auger drill holes completed at Adriano (11002L),… pic.twitter.com/FcvdymFdGu

— MRG Metals (@mrg_metals) October 17, 2025