London-listed NeoTerra says metallurgical breakthroughs at its Monte Muambe project, in Mozambique, have significantly derisked development of the project’s multi-commodity flowsheet, confirming a practical route to produce premium acid-grade fluorspar while separating heavy rare earths and gallium-bearing materials.

In a statement on operational progress at the project and recent developments in the global rare earths and gallium markets, the company highlights that gallium was successfully upgraded by about 100% during initial flotation testing, demonstrating a potential low-cost pathway towards pre-concentrating this critical metal.

Metallurgical testwork is inherently iterative, and the additional complexity of developing an integrated process capable of recovering three products of commercial-grade fluorspar, a heavy rare earths by-product and a pre-concentrated feedstock for potential gallium extraction, has extended the optimisation programme.

While this has impacted on the timeline, NeoTerra says it believes the additional work will significantly enhance the overall value and commercial potential of the project.

The US-government-funded $1.88-million rare earths prefeasibility programme is moving towards execution, with international engineering groups shortlisted and a contract award expected shortly.

NeoTerra outlines growing commercial engagement with strategic partners and critical metals traders from Europe, North America and Asia, reflecting increasing demand for secure non-Chinese supplies of heavy rare earths and gallium.

The company posits that the rapidly widening price premium for non-Chinese heavy rare earths further enhances Monte Muambe’s strategic value, with tightening export restrictions reinforcing the importance of independent supply chains.

“Our latest metallurgical results are an important milestone for NeoTerra. They materially derisk the development of the Monte Muambe fluorspar mine and reinforce the potential to generate value from three strategically important commodities within a single project,” CEO Cedric Simonet says.

“Alongside this technical progress, market conditions continue to strengthen. Global supply chains are rapidly shifting as governments and industry seek secure supplies of critical minerals outside China. As a result, we are seeing engagement from a rapidly growing pool of strategic partners and downstream participants who recognise our unique position, and we look forward to materialising this interest through formal agreements over the coming months.

“With the US government-funded rare earths work programme about to commence, multiple commercial discussions progressing and metallurgical programmes continuing to deliver encouraging results, we believe NeoTerra is entering an exciting phase of value creation,” he adds.