The government of Tanzania has approved the Special Mining Licence (SML) application by PR NG Minerals, a wholly-owned Tanzanian incorporated subsidiary of Peak, for the Ngualla Rare Earth Project.
Cabinet of Ministers gave the approval and said the government is working with Peak to finalise an Economic Framework Agreement, Shareholders’ Agreement and other related documentation required as part of a formal grant of the SML by the Minister of Minerals.
The SML is the milestone regulatory authorisation required to develop the Ngualla Project under the Mining Act of the United Republic of Tanzania. The SML will provide the exclusive right to conduct mining operations at the Ngualla Project, which covers an area of approximately 18.14 km2.
Ngualla Project
According to the agreement, Peak will now progress workstreams relating to funding, offtake and development arrangements for the Ngualla Project, with construction targeted to commence by the end of September 2022. The Ngualla Project is one of the largest, highest grade and lowest cost Neodymium and Praseodymium (NdPr) rare earth projects in the world. It is located approximately 147 km from the city of Mbeya in southern Tanzania and on the edge of the East African Rift Valley.
It has large and high-grade Ore Reserves (18.5 Mt grading at 4.8% Rare Earth Oxide for 887kt REO) and Mineral Resources (214.4 Mt grading 2.15% REO for 4.61 Mt REO). The Ngualla Project entails the construction of a mine, mill, concentrator, community projects and associated infrastructure. Construction of the project is expected to cost approximately US$200 million and create around 600 direct jobs during construction and around 220 direct jobs during operations.
The project will produce a rare earth concentrate grading 45% REO, which will be shipped to Peak’s planned rare earths refinery in the Tees Valley, United Kingdom, which will produce NdPr Oxide and other separated rare earth products.