• MRG Metals finds potential rare earth deposit in Mozambique

• Discovery adds to growing global interest in African rare earths

• Mozambique seen as key alternative to China’s supply dominance
  

Australian junior miner MRG Metals Limited announced on Friday, Oct. 17, the discovery of a "potential alluvial rare earth deposit" in Mozambique. While the preliminary finding requires further exploration, it highlights the East African nation as a promising hub for the group of metals whose global supply is heavily concentrated in China.

Drilling conducted by MRG at the Adriano site in Sofala province yielded significant concentrations of heavy minerals. The company noted that these efforts follow an earlier sampling campaign that revealed up to 32,393 parts per million (ppm) of Total Rare Earth Oxides (TREO). As a sign of its growing interest in Mozambique's potential, MRG stated it has submitted license applications for additional areas in the country.

"With clear next steps in place, we’re well positioned to move from early-stage sampling to defining a resource that can create long-term value for shareholders," said Andrew Van Der Zwan, MRG Chairman.

The preliminary results at Adriano coincide with another promising project in the country: Monte Muambe, led by the UK's Altona Rare Earths. Altona’s exploratory study, published in October 2023, indicated that a future mine could deliver an average of 15,000 tonnes of mixed rare earth carbonate per year over an 18-year life. That project, currently in the pre-feasibility study phase, showed an estimated after-tax Net Present Value (NPV) of $283 million and an Internal Rate of Return (IRR) of 25%.

While awaiting the start of commercial operations at that deposit, Mozambique already supplies a small amount of monazite, a rare earth-containing mineral, through the Moma mine operated by Kenmare Resources.

With China controlling approximately 37% of global reserves and 90% of refining capacity, Beijing largely dominates the value chain for these metals, which are essential for electric vehicles, defense, and wind energy industries. As China uses this dominance as leverage in its trade rivalry with the United States, Washington and the European Union are increasingly seeking alternative sources. By developing its resources, Mozambique can help strengthen Africa's rare earth supply.

According to Benchmark Mineral Intelligence (BMI), eight African rare earth projects are expected to enter production by 2029, spanning Tanzania, Angola, Malawi, Uganda, South Africa, and Mozambique. The continent, which currently produces no neodymium or praseodymium, could account for approximately 9% of global supply within four years.

Emiliano Tossou