Peak Rare Earths Partners with Minjingu Mines for Future Phosphate Supply from Ngualla

Peak Rare Earths Ltd (ASX: PEK) has a potential pathway to market after signing a non-binding co-operation and development Memorandum of Understanding (MoU).

The MoU is with Tanzanian phosphate and fertiliser group, Minjingu Mines and Fertiliser Ltd.

Whilst Peak’s primary focus remains on the development of the Ngualla Rare Earth Project, the agreement supports the potential of a complementary phosphate operation.

Key elements include the potential co-operation around sales, offtake and co-investment.

Along with a joint study group to expedite the development of a low-cost beneficiation flowsheet.

This follows the recently identified opportunity to supply phosphate into the Tanzanian and regional fertiliser markets.

Background on Minjingu Mines

Minjingu Mines is an established Tanzanian phosphate mining and fertiliser group with a customer network across Tanzania, South Africa, Zambia, Kenya, Uganda and Rwanda.

The group mines phosphate rock and further processes the rock into organic and blended fertilizers, with 30 years of experience.

Minjingu Mines is the only phosphate mining and fertilizer manufacturing company in East Africa which is resource based and produces compound blended fertilizers.

The local phosphate in the region is biogenic, which is produced by living organisms or biological processes, and is ideal for applications on the acidic soils of East Africa.

Peak’s multi-commodity vision

Bardin Davis, chief executive officer for Peak, commented:

“The potential development of a high-grade phosphate operation is an exciting opportunity and consistent with our vision of a multi-commodity and multi-generational Ngualla Project.

“It would provide a major source of phosphate for Tanzania and is consistent with Government initiatives around enhancing agricultural yields and bolstering food security.

“We are delighted to be working with a highly experienced partner such as Minjingu Mines to unlock this opportunity.”

The Ngualla Deposit remains highly prospective for phosphate, which was previously the primary exploration focus prior to the discovery of rare earths in 2010.

Ngualla rare earths

The Ngualla Project is one of the largest and highest grade undeveloped rare earth deposits in the world, with significant exploration and development upside.

The project entails the construction of a mine, mill, concentrator, community projects and associated infrastructure.

Construction of the project is expected to cost around US$320 million and create 600 and 3,000 indirect jobs during construction and around 220 direct and 1,000 indirect jobs during operations.

Significant beneficiation and value-adding will be undertaken in Tanzania with ore an grade of around 4.8% REO being beneficiated into a 45% REO high-grade concentrate.

The plan for this high-grade rare earth concentrate will be for it to be initially sold as a standalone product.

This is while the study of downstream integration opportunities is undertaken in collaboration with the Government of Tanzania.

Ngualla hosts a 214 million tonne resource with an initial 24 year life.

Compelling project economics include a net present value of US$809 million and an internal rate of return of 30.8%.

 

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