London Stock Exchange-listed rare earths exploration and development company Altona said newly released scoping studies showed its Monte Muambe rare earths project in northwest Mozambique has the potential to develop into a profitable mining operation.
The company also released its latest expert report.
“The scoping study at Monte Muambe is an important milestone for Altona. This important result is a positive initial confirmation of the economic viability of the project and enables the company to establish itself among other potential rare earth element producers in Africa. own status.
“Together with the mineral resource estimate, it provides a solid basis for further progress on the project,” said Altona CEO Cedric Simonet.
The scoping study showed an after-tax net present value (NPV) of $283.3 million and an after-tax internal rate of return of 25%.
Initial production payback is expected to take 2.5 years, with production averaging 15,000 tonnes of mixed rare earth carbonate (MREC) per year at an average price of $13,558.4 per tonne.
Overall, the project is expected to have a service life of 18 years. The operation involves a two-stage recovery process, including crushing and flotation, followed by hydrometallurgy.
LoM’s earnings before interest, taxes, depreciation and amortization were $1.67 billion, derived from initial capital expenditures (capex) of $276.3 million.
The Monte Muambe scoping study considered open pit mining of Targets 1 and 4 with a LoM strip ratio of 1.6 over a period of 18 years. It is expected that 750,000 tons of ore will be mined annually and processed in the processing plant to produce rare earth metal concentrates. The mineral processing process includes crushing, grinding and flotation.
The concentrate is then processed in a hydrometallurgical plant, producing an average of 15,000 tonnes of MREC per year. The hydrometallurgical process involves leaching of weakly acidic vein rock, followed by leaching and purification of rare earths.
MREC products will be packed and transported via existing road infrastructure to the port of Beira in Mozambique for export.
The project has a net present value of $283.3 million with a real discount rate of 8%, which is most sensitive to revenue generated from price, extraction, grade and exchange rates, less sensitive to operating expenses and least sensitive to capital expenditures.
The scoping study identified significant growth potential, which will be further developed in a pre-feasibility study (PFS). This includes possible increases in resource base, LoM and ore production rates, as well as optimization of mining parameters.
The processing and metallurgy of processing and hydrometallurgical plants as well as the energy mix and logistics options will all be improved in the future.
Altona said the company will also explore the possibility of further separation and refinement at local, national or regional levels, as well as establishing responsible sourcing systems.
The release of the scoping study marks the end of the second phase of the project transfer agreement and entitles Altona to acquire an additional 31% interest in the project’s special purpose vehicle, Monte Muambe Mining Limitada (MMML), thereby increasing its current total interest increased to 51%. Altona said contractual and administrative procedures have been initiated to implement the change.
“Monte Muambe’s magnetic metals account for 90% of the project’s future revenue and are a key component of the global green energy transition. The supply gap for neodymium oxide and praseodymium oxide is expected to increase to 90,000 tons per year by 2040.” To achieve energy To decarbonize, more magnetic metal mines must come on stream in the coming years,” Simonet said.
The project is now in its third phase, which upon completion will increase ownership of the company to 70%, with the key deliverable being PFS. The remaining owners are Ussokoti Investimentos and MMML.
Initial pre-feasibility study activities began in July with Target 4 infill drilling and will be progressively followed by additional exploration, planning and advisory services procurement activities over the coming months, with a focus on additional metallurgical testing work. The company also intends to apply for a Phase 3 mining concession.
“As the project enters the pre-feasibility study phase, the company will continue its efforts to de-risk Monte Muambe and optimize its technical, commercial and financial parameters with local partners.
“The global rare earth supply chain is diversifying away from China’s decades-long dominance, with Western processing plants starting to come online,” Simonet noted.
