Key Minerals of the African Continent: Mozambique Joins the List of Potential Rare Earth Suppliers in Africa
¬ MRG Metals Limited Discovers Potential Rare Earth Deposits in Mozambique
¬ This Discovery Increases Global Interest in African Rare Earths
¬ Mozambique is Seen as a Key Alternative to China's Supply Dominance
Australian junior mining company MRG Metals Limited announced on Friday, October 17, that it has discovered a "potential alluvial rare earth deposit" in Mozambique. Although preliminary findings require further exploration, this highlights the potential of this East African country as a supply center for rare earth metals, as global rare earth supplies are highly concentrated in China.
MRG found a large quantity of heavy minerals during drilling operations at the Adriano mine in Sofala province. The company stated that this exploration was carried out based on previous sampling activities that found total rare earth oxides (TREO) content as high as 32,393 ppm. To demonstrate the importance of Mozambique's resource potential, MRG has submitted applications for exploration licenses in other areas of the country.
Andrew Vande Zwan, Chairman of MRG, said: "With clear follow-up steps in place, we are now well positioned to move from early-stage sample collection to developing resources that can create long-term value for shareholders."
The preliminary exploration results in Adriano align with the Montepuez project led by British Altanna Rare Earths. According to an exploration report released by Altanna in October 2023, the future mine could produce an average of 15,000 tons of mixed rare earth carbonate per year over an 18-year operating cycle. The project, which is currently in the pre-feasibility study stage, estimates a post-tax net present value (NPV) of $283 million and an internal rate of return (IRR) of 25%.
While waiting for the commercial mining of this deposit, Mozambique already supplies small amounts of monazite containing rare earth minerals through the Moma mine operated by Kenmare Resources.
China controls about 37% of the world's rare earth reserves and 90% of the refining capacity, giving it a dominant position in key sectors such as electric vehicles, defense, and wind energy. In response to China's use of this advantage in trade disputes with the United States, the US and EU are actively seeking alternative resources. If Mozambique develops its own resources, it will significantly enhance Africa's rare earth supply capacity.
Data from Benchmark Mineral Intelligence (BMI) shows that eight African rare earth projects, including Tanzania, Angola, Malawi, Uganda, South Africa, and Mozambique, are expected to come online by 2029. The African continent has not yet mined neodymium and praseodymium, but it is expected to contribute about 9% of global supply within the next four years.
Source: ecofinagency
Original: www.toutiao.com/article/1846498496357834/
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