Projects are springing up around the world, now including Tanzania, as miners seek to expand the rare earth industry.
As a major product of the fast-growing green energy revolution, rare earth elements are used to produce electromagnets ranging from electric cars (EV) to direct-drive wind turbines. With tighter global emissions restrictions driving up demand for electric vehicles, profits from rare earth materials are a smart move to gain a place in a booming green economy, amid continuing trade tensions. Finding alternative resources in China has become a top priority.
Peak Resources's Ngualla project is based on one of the world's largest and highest-grade undeveloped neodymium-praseodymium (NdPr) deposits in southern Tanzania. Rare earths are still an emerging product, and despite the high grade of deposits in Tanzania, Peak Resources's project marks the country's first rare earth mining project to be officially developed.
However, it has encountered obstacles, including a dispute between the government and Acacia, a gold miner, and parliamentary elections in 2020. Now, Peak is about to get a mining license.
Rare earths in Tanzania
Tanzania has a long history of mining. It is not only the fourth largest gold producer in Africa, but also has precious materials such as diamonds and tanzanite.
With the handover of the government, the new emphasis on the mining industry has dominated, and the Ministry of Mines has reportedly turned its attention to improving the mining industry's contribution to GDP. The new government also seeks to develop mining rights for mining companies and the right of Tanzania to benefit from its mineral wealth.
The government's support for the mining industry has laid the foundation for the vigorous development of the mining industry in Tanzania, while Peak is in the main position to comply with the trend.
Bardin Davis, managing director of Peak Resources, said Tanzania is a very mature mining jurisdiction with important gold, diamond and tanzanite projects in operation, as well as large rare earth, graphite and nickel development projects. From a geological point of view, this is a very attractive jurisdiction. "
Ngualla is one of the largest and highest-grade undeveloped neodymium-praseodymium deposits in the world. It has 4.8 per cent ore reserves and can support an initial mine life of 26 years. The aim is to produce a high-grade concentrate with a rare earth oxide grade of about 45 per cent at Ngualla and then transport it to the Teesside rare earth refinery in the UK.
