Peak Resources reported that a detail project update into the Ngualla rare earths project, in Tanzania, led to a 10% reduction of capital cost to US$330 million and 18% reduction of operating costs to $97 million a year.

Feasibility study (PFS) carried out in March 2014 estimated the project required capital investment of $367 million to produce 10,000 tons of rare earths, per year, over about 50 years. The project’s net present value had been estimated at $1.31 billion and internal rate of return at 39%.

Reduction of operating costs was possible through the optimization of flow sheet which confirmed selection of alkali roast process, allowing for the early injection of the majority of low value cerium and deleterious iron, leading to significant reduction in reagent costs.

Also, the project mine life has been estimated to 31 years, compared to 50 years in the PFS, based on the high-grade weathered Bastnaesite zone, which comprised only 22% of the total mineral resource in terms of contained rare earths.

The Ngualla deposit, which Peak Resources fully owns, is located on the East African rift and should hold a resource of 170 million tons, with a 2.24% grade of rare earths oxide, to which it owes to be the fifth largest rare earths deposit worldwide, China excluded.

Louis-Nino Kansoun