Friday , January 27 2023

Rare earths prices impact Tanzania’s Ngualla project

Tanzania’s Ngualla project developers Peak Resources have polished finances presentation of the project to include process optimisation studies and the latest rare earth pricing trends.

Peak has decreased the expected post tax net present value from the $633-million considered in the April bankable feasibility study (BFS) to $612-million, while the post tax internal rate of return has increased from 21% to 22%, based on the latest rare earths prices.

Rocky Smith, Peak Chief Executive Officer recently  told shareholders that Ngualla project gave further evidence that the project was ‘the best undeveloped rare earth deposit in the world’.

He said with the increase in demand for neodymium and praseodymium driving prices higher, the company expected to see further improvements in Ngualla’s economics in future.

On the back of the optimisation work concluded in August this year, which resulted in increased expected production from 28 300 t/y of mineral concentrate to 32 700 t/y of mineral concentrate, project costs have increased from the $356-million estimated in the BFS to $365-million, while average yearly operating costs have increased from $83-million to $91-million.

Check Also

Latest Technology Advancements to be on display at Mining Indaba 2023 with Infratech Content Platform

The future of African mining will take centre stage as industry experts delve into the …