KEY POINTS
- Altona completes over 800 meters of drilling and positive scoping study at Monte Muambe project in Mozambique.
- CEO Cedric Simonet prioritizes Pre-Feasibility Study and fluorspar production potential at Monte Muambe.
- Monte Muambe’s high-quality reserves aim for 15,000 tons of MREC annually with an NPV of $283.3 million.
Altona Rare Earths, a mining exploration company, is making notable strides in the development of its flagship Monte Muambe project in Mozambique, underscoring its commitment to establishing a significant presence in the rare earths sector.
The company has completed over 800 meters of drilling, delivered a maiden resource estimate, and published a positive scoping study highlighting the project’s robust potential.
CEO Cedric Simonet confirmed that the company is now focused on a Pre-Feasibility Study (PFS) to explore the project’s potential for fluorspar production.
A strategic location in Mozambique’s mining landscape
Located 80 kilometers southeast of Tete city, Monte Muambe is the only rare earths deposit in Mozambique currently under active development. The site spans 39.39 square kilometers and features a 4-kilometer carbonatite intrusion. Altona holds a 51% stake in the project, with the option to increase this to 70% through a farm-out agreement.
Initially explored for fluorspar, rare earth elements were identified in 2011 but the project was shelved due to low interest. In 2019, Altona shifted its focus to rare earths under Simonet’s leadership, securing an agreement in 2021 to develop the deposit.
High-quality reserves with strong growth potential
Altona’s approach centers on quality over quantity, with a September 2023 JORC-compliant Mineral Resource Estimate (MRE) outlining 13.6 million tonnes at 2.42% total rare earth oxides (TREO). Notably, 58% of the resource is classified as indicated, containing 42,500 tonnes of rare earths suitable for electric vehicle batteries and wind turbines. The project’s expansion potential is significant, with a target of increasing the resource to 20-25 million tons, particularly at Targets 1 and 4.
The scoping study projects an open-pit operation capable of producing 15,000 tonnes of MREC annually. With an estimated post-tax NPV of $283.3 million and an internal rate of return (IRR) of 25%, the project promises strong financial returns, with a projected EBITDA of $1.67 billion over the mine’s life, based on an MREC price of $13,588 per ton.Â
Capital expenditure is forecast at $276.3 million, with a payback period of 2.5 years. This includes the construction of a hydrometallurgical plant designed to maximize value for both Altona and Mozambique.
Fluorspar and market insights
As reported by MiningReviewAfrica, Simonet suggests that capital expenditures could be reduced if higher-grade concentrates are produced at the beneficiation plant, which would also lower operational costs. Ongoing flotation optimization tests conducted at SGS Lakefield in Canada have shown promising results, with the best test achieving a recovery rate of 69.3 percent.
The company plans to complete the PFS by 2026, with potential construction beginning late in 2026 and commissioning expected in 2028 or early 2029, contingent on securing funding. Altona has also applied for a mining license, which it expects to be granted soon. Additionally, the company is considering producing fluorspar as a by-product from the high-grade veins at Monte Muambe, which could yield up to 70% calcium fluoride.
Despite market challenges, Simonet remains confident about the long-term demand for rare earths, particularly magnet metals, which constitute 90 percent of Monte Muambe’s value. As global supply-demand imbalances are expected to widen by 2040, Monte Muambe’s strategic location, strong government support, and high-quality resources position it to become one of Africa’s leading rare earths projects.
