KEY POINTS
- NeoTerra seeks $5m US funding for Monte Muambe.
- Fluorspar resource target could rise to 4Mt of CaF2.
- Company is studying hydrofluoric acid production in Mozambique.
NeoTerra Group has applied for a $5 million US grant to assess a potential expansion of its Monte Muambe fluorspar project in Mozambique, with the funding aimed at increasing mineral resources and exploring downstream processing opportunities.
The London-listed critical minerals company is currently developing a fluorspar mining operation at Monte Muambe with an initial production target of 50,000 tonnes a year.
NeoTerra said it now sees an opportunity to develop a larger-scale operation by expanding the project’s mineral resource and securing additional sources of fluorspar feedstock in Mozambique.
The company currently has an estimated 716,000 tonnes of contained calcium fluoride, known as CaF2, at Monte Muambe. If the grant is approved, NeoTerra plans to use part of the funding to conduct additional drilling with the goal of increasing the resource to about four million tonnes of CaF2.
A larger resource base could allow the company to increase production capacity or extend the mine’s operating life.
Funding could support downstream processing
NeoTerra also plans to use the proposed grant to study Mozambique’s wider fluorspar and fluorine market.
The study would assess potential additional fluorspar resources and feedstock sources across the country, helping the company determine whether there is enough supply to support a larger processing operation.
Another major component of the proposed programme is a conceptual feasibility study for a hydrofluoric acid production facility in Mozambique.
Hydrofluoric acid is an important industrial chemical used in areas such as mineral processing, chemicals manufacturing and the production of fluorine-based materials.
NeoTerra believes developing local processing capacity could create additional value from Mozambique’s mineral resources instead of focusing solely on the export of mined fluorspar.
US support targets critical minerals
The $5 million application was submitted under the US-Africa Strategic Investment Program, which is administered by the US Department of State’s Bureau of African Affairs.
The programme is designed to support investment in African critical mineral supply chains. It has about $500 million available, with individual grants ranging from $5 million to $50 million.
NeoTerra CEO Cédric Simonet said the company wants to build on its existing development plan for Monte Muambe while assessing whether the project can support a larger, modular operation.
He said increasing the mineral resource and identifying additional regional sources of fluorspar could help determine whether Mozambique has sufficient scale to support downstream hydrofluoric acid production.
The proposed funding would also be non-equity-dilutive, meaning NeoTerra would not need to issue new shares to raise the money if the grant is secured.
The latest funding application builds on an existing relationship between NeoTerra and the US government.
The company has already secured a $1.88 million grant from the US Trade and Development Agency to advance the rare earths component of Monte Muambe toward the prefeasibility stage.
NeoTerra is also pursuing strategic partnerships and potential funding for the project’s gallium component, particularly with US-aligned partners seeking alternative sources of critical raw materials.
The developments point to Monte Muambe evolving beyond a single fluorspar mining operation, with NeoTerra assessing opportunities to develop a broader critical minerals and downstream processing hub in Mozambique.
