Consulting|Engineering|Environment|Financial|flotation|Mining|PROJECT|Project Management|Projects|Resources|Testing|Water|Environmental
Consulting|Engineering|Environment|Financial|flotation|Mining|PROJECT|Project Management|Projects|Resources|Testing|Water|Environmental

Ngualla rare earth project, Tanzania – update

Image of mounds of rare earths

5th May 2023

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor


Font size: - +

Name of the Project
Ngualla rare earth project.

On the Ngualla carbonatite, southern Tanzania.

Project Owner/s
Peak Rare Earths.

Project Description
Ngualla is one of the biggest and highest-grade undeveloped neodymium/praseodymium oxide projects in the world.

The updated bankable feasibility study (BFS), completed in October 2022, estimates ore reserves at 18.5-million tonnes grading 4.8% total rare-earth oxides (TREOs) for contained TREOs of 887000 t.

Rare-earth ore mined from the Ngualla deposit will be processed through a concentration plant, which is co-located at the mine site. Ore will be beneficiated through a milling and two-stage flotation circuit, resulting in a high-grade rare-earth concentrate of about 45% TREOs.

Based on the original BFS, completed in 2017, the updated BFS has decreased the concentrate production from Ngualla from 18 200 t/y of TREO to 16 200 t/y over a 24-year mine life.

Net Present Value/Internal Rate of Return
The BFS update estimates a net present value, at a (real) 8% discount rate, of $1.48-billion and an equity internal rate of return of 37.3%.

Potential Job Creation
Not stated.

Capital Expenditure
Preproduction capital has decreased from $356-million in the 2017 BFS to $321-million in the updated BFS.

Planned Start/End Date
With the completion of the BFS update, Peak’s focus will now shift to progressing the Ngualla project towards a final investment decision by the end of May 2023.

Latest Developments
Peak Rare Earths has been granted a special mining licence for its Ngualla rare earths project.

The grant of the special mining licence follows the signing of a binding framework agreement with the government of Tanzania in April, and will initially cover a 30-year term over an 18.14 km2 area that contains the Ngualla project deposit.

In accordance with the framework agreement, the special mining licence area will be expanded in the future to include an existing prospecting licence and a recently expired prospecting licence, while the initial term of the licence will also be amended, with the ability to extend on application in accordance with the law at the time.

Meanwhile, Peak has reported that it will raise A$27.5-million in a two-tranche institutional placement to advance the Ngualla project towards a final investment decision by the end of September.

Peak has said that it has received firm commitments from institutional investors for the placement, under which about 55-million new shares will be offered at 50c each.

The first tranche of the placement will comprise about 28.6-million shares, raising A$14.3-million under Peak’s existing placement capacity, while the second tranche of 26.4-million shares, to raise a further A$13.2-million, will be subject to shareholder approval.

The offer price represents a 20% discount to Peak’s last closing price on April 26, and a 25.3% discount to the company’s five-day volume weighted average share price.

Peak’s biggest shareholder, Shenghe Resources, has committed to top up its shareholding to 19.9% through the placement, subject to shareholder approval.

Key Contracts, Suppliers and Consultants
Wood (project management and BFS update lead); Oreology Mine Consulting (ore reserve update and mine planning); Knight Piésold Consulting (tailings management and water hydrology); Dhamana Consulting (environmental management); Future Proof (environment, social and governance strategy and reporting); Paulsam Geo-Engineering Company (environmental- and social-impact assessment); Ai (market analysis and pricing outlook; WaterBorne Capital (financial modelling and analysis); and Auralia Metallurgy (metallurgical testing).

Contact Details for Project Information
Peak Rare Earths, tel +61 8 9200 5360 or email

Edited by Creamer Media Reporter



Sandvik Mining and Rock Solutions
Sandvik Mining and Rock Solutions

Sandvik Rock Processing products and services provide you maximum value in terms of performance, quality, safety, flexibility and not least total...

Schauenburg SmartMine IoT
Schauenburg SmartMine IoT

SmartMine IoT has been developed with the mining industry in mind, to provides our customers with powerful business intelligence and data modelling...


Latest Multimedia

sponsored by

Photo of Martin Creamer
ARM, GoldOre, Gautrain make headlines
22nd September 2023
Magazine cover image
Magazine round up | 22 September 2023
22nd September 2023
Resources Watch image
Resources Watch
21st September 2023

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?







sq:0.089 0.14s - 92pq - 2rq
Subscribe Now