Name of the Project
Ngualla rare earths project.

Location
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.

It has estimated ore reserves of 18.5-million tonnes grading 4.8% total rare-earth oxides (TREOs) for contained TREOs of 887 000 t. Mineral resources are estimated at 214.4-million grading at 2.15% TREOs for 4.61-million tonnes TREOs.

The project has a mine life of about 20 years, based on only ore reserves.

Run-of-mine throughput is estimated at 800 000 t/y dry ore.

Rare-earth ore mined from the Ngualla deposit will be processed through a concentration plant at the mine site. Production is estimated 37 200 t/y of concentrate.

In November 2023, Peak released the results of a front-end engineering design that supports the robust economics for the project.

Net Present Value/Internal Rate of Return
The project has a net present value, at an 8% discount rate, of $982-million and an internal rate of return of 33.8%.

Potential Job Creation
Not stated.

Capital Expenditure
$286.9-million.

Planned Start/End Date
Not stated.

Latest Developments
The project has received robust support from leading development finance institutions, export credit agencies and commercial banks.

In a funding update on April 29, 2024. Peak said it had received indicative, nonbinding, expressions of interest for $176.6-million. This funding momentum comes against the backdrop of an estimated upfront capital cost of $287-million.

The funding interest includes contributions from various prominent institutions, with $52.6-milion from a South African development finance institution, $65-million from the Development Bank of Southern Africa, $50-million from CRDB Bank Tanzania, which has committed to arrange a tranche, and $9-million from an East African commercial bank.

In addition, discussions are under way with Export Credit Insurance Corporation of South Africa to provide political risk insurance and commercial risk insurance cover to support a senior debt tranche linked with the required level of South African content being achieved.

Discussions are continuing with other financial institutions to have a fully formed funding consortium by the end of the June quarter.

Key Contracts, Suppliers and Consultants
Wood (project management and bankable feasibility study 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 info@peakrareearths.com.