Altona Rare Earths plc expects to increase its holding in the Monte Muambe project from 31 to 51% following today’s publication of the scoping study.
PROCESS
Results show an expected average 15,000 tonnes production of mixed rare earth carbonate (MREC) over 18 years from open-pit mining of targets 1 and 4, at a life of mine strip ratio of 1.6.
An anticipated 750,000 tonnes of ore per annum will be extracted in two stages to produce a rare earths concentrate.
Beneficiation will include crushing, milling and flotation before the concentrate is processed through a hydrometallurgical plant.
“The hydrometallurgical process will involve a weak acid gangue leach, followed by rare earths leaching and purification,” said Altona.
“The MREC product would be packaged and transported via existing road infrastructure to the port of Beira, in Mozambique, for export.”
Life of mine EBITDA* is expected to be US$1.67 billion, initial capital expenditure of $276.3 million with payback from first production in 2.5 years.
Post-tax net present value 8 is $283.3m with post-tax internal rate of return of 25%.
Altona added that the scoping study, within the new competent person’s report, identified “considerable upside potential” which would be further developed in the pre-feasibility study for phase III of the project.
Preliminary PFS activities of in-fill drilling at target 4 began in July. Completion of additional exploration, planning and metallurgical testwork will result in the company holding 70% of Monte Muambe.
Altona also intends applying for a mining concession during phase III.
IMPECCABLE
Chief executive officer Cedric Simonet said that the scoping study had established the company among other prospective rare earth producers.
“As the project moves into its PFS stage, the company will continue to work towards de-risking Monte Muambe and, with its local partners, to optimise its technical, commercial and financial parameters.
“We believe the timing for this achievement is impeccable, at a time where the global rare earths supply chain is diversifying away from China’s decades-long domination, and Western processing facilities are starting to come online.
“Altona intends to play its part in supporting this crucial agenda, by working in a responsible manner to reduce the dependence on China for critical mineral supplies.”
*earnings before interest, taxes, depreciation and amortisation
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