The Conversation (0)
July 14, 2024
Pearl Gull is pleased to advise that it has entered into a binding term sheet to acquire 100% of the fully paid ordinary shares in Huemul which in turn has signed an agreement and is negotiating a further agreement for it to have a right to earn up to 80% of the equity in a privately held Chilean-company, NeoRe SpA (NeoRe).
Highlights:
- Pearl Gull Iron Limited (ASX: PLG) (Pearl Gull, PLG or the Company) has entered into a binding agreement to acquire Huemul Holdings Pty Ltd (ACN 665 254 491) (Huemul) (the Acquisition). Huemul has signed an agreement and is negotiating a further agreement to have the right to earn up to an 80% interest in NeoRe SpA.
- NeoRe SpA is a Chilean company that holds tenements and tenement applications in Chile that are highly prospective for Ionic Adsorption Clay (IAC) Rare Earth Elements (REEs) – the La Marigen Project
- The La Marigen Project consists of 5 tenement/tenement application areas covering a combined area of ~22,800ha along the coastal belt of Chile, an emerging IAC REE province
- The coastal belt of Chile is underexplored; however, the belt has numerous analogies with respect to the geology and weathering profile of the prolific southern China ionic rare earth province that spans from Yunnan in the southwest to Zhejiang in the southeast
- Following the acquisition of Huemul, the Company proposes an exploration programme at the La Marigen Project, drawing on leading geochemical and geophysical methodologies to identify priority drill targets
- The region is known to host mineralised clay horizons that are highly enriched in REE elements such as (Nd+Pr & Dy+Tb) as demonstrated at the nearby advanced IAC REE project, Penco, owned by TSX-listed Aclara Resources Inc (TSX: ARA) (Aclara)
- Importantly, the style of REE enrichment in this coastal belt frequently results in a mineral assemblage skewed towards heavy rare earth elements (HREE)
- NeoRe SpA's in-country team has extensive knowledge and experience operating in the region and was instrumental in the development of the target generation of rare earth resources, that led to resources that underpin Aclara’s Penco Project
- The Company will also assess further complementary mineral exploration opportunities in the region to assess value accretive opportunities in this IAC REE district
- Experienced minerals industry Executive, Dr John Mair, to join the Board and oversee the Company’s REE strategy. Dr Mair has over a decade of experience in the rare earth sector through his integral role in resource development, and metallurgical and feasibility studies of the Kvanefjeld project in Greenland
NeoRe holds 4 granted tenements and is the applicant pursuant to tenement applications that are considered to be highly prospective for IAC REEs, collectively covering a surface area of ~22,800ha and which comprise the La Marigen Project. Further details are provided in the Tenement Schedule in Appendix 5.
In parallel with the Acquisition, experienced Rare Earth industry executive Dr John Mair will join the Board of Pearl Gull and will provide guidance and oversight to the exploration activities in relation to the La Marigen Project.
The NeoRe in-country exploration team is highly credentialed and has extensive knowledge and experience operating in the region. They have a robust track record of delineating and developing REE resources and following this transaction will be well positioned to progress the La Marigen Project.
The Acquisition and proposed farm-in to the La Marigen Project would further strengthen the asset portfolio of Pearl Gull with the Company seeking to leverage its network in the resources industry to provide new opportunities for its shareholders while still seeking to realise value from the Cockatoo Island Project, located on Cockatoo Island, situated off the Northwest coast of Western Australia.
Chairman Russell Clark commented:
“The farm-in to the La Marigen Project provides the Company with an opportunity to potentially acquire an interest in an emerging ionic adsorption clay rare earth elements region, known to host high grades. Importantly the project area is located in close proximity to Concepción, which is a major industrial city on the coast of Chile.
The limited surface sampling programme within the project area returned results commensurate with reported occurrences of IAC REE deposits in the region. Additionally, our partners at NeoRe conducted (un-certified) bulk sample testing (200kg sample) at the University of Concepción, which returned preliminary results suggesting that the project areas are reasonably likely to host disorbable IAC REE.
This demonstrates the potential that the region is prospective to host IAC REE and provides the Company with an exciting opportunity within an emerging region."
Click here for the full ASX Release
This article includes content from Pearl Gull Iron Limited , licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
PLG:AU
26 March
EU Deems Mkango and Euro Manganese Projects "Strategic" Under Critical Raw Materials Act
Resource companies Mkango Resources (TSXV:MKA,OTC Pink:MKNGF) and Euro Manganese (TSXV:EMN,ASX:EMN,OTCQB:EUMNF) received boosts this week when their respective assets were designated "strategic projects" under the EU's Critical Raw Materials Act (CRMA).
On Monday (March 24), the European Commission released a list of 47 strategic critical raw materials projects. Located across 13 EU member states, they cover one or more segments of the raw material value chain.
They also account for 14 of the 17 strategic raw materials included in the CRMA.
Among them are Mkango’s Pulawy project, which has been recognized for its role in supplying rare earth oxides, and Euro Manganese’s Chvaletice project, a contributor to the European battery materials supply chain.
Mkango Resources’ Pulawy rare earths separation project
Mkango's Pulawy project is expected to play a role in establishing a secure European supply chain for neodymium, praseodymium, dysprosium and terbium, which are used to make electric vehicles and wind turbines.
On February 17, the company signed a land lease agreement through its Polish subsidiary, Mkango Polska, in collaboration with Grupa Azoty Puławy. It facilitates the construction of a rare earths separation facility in Puławy, Poland.
The proposed facility aims to produce 2,000 metric tons per year of neodymium and praseodymium oxides, plus 50 metric tons per year of dysprosium and terbium oxides. Lanthanum cerium carbonate will also be produced at the site.
With strategic project status, Pulawy will benefit from expedited permitting processes under the CRMA, ensuring that Poland’s regulatory authorities adhere to a maximum 15 month timeline for processing and refining projects.
The project will also gain access to coordinated support from the European Commission, member states and financial institutions, facilitating financing opportunities and connections with potential offtakers.
Aside from its work at Pulawy, Mkango is focused on developing sustainable sources of rare earth elements, as well as leading in recycled rare earth magnet production through its subsidiary, Maginito.
Maginito holds an interest in HyProMag, which focuses on rare earth magnet recycling in the UK and Germany, and Mkango Rare Earths UK, which specializes in long-loop rare earth magnet recycling.
Euro Manganese's Chvaletice manganese project
Euro Manganese's Chvaletice manganese project, located in the Czech Republic, aims to become a major supplier of high-purity manganese for the European battery industry. The CRMA lists high-purity manganese as a strategic raw material, essential for electric vehicle batteries and the broader clean energy transition.
The Chvaletice project stands out as a waste-to-value initiative, focused on reprocessing old mine tailings rather than developing a new mine. The project represents the only sizable manganese resource within the EU, positioning Euro Manganese as a key player in the region’s battery materials supply chain.
With strategic project designation, Chvaletice will benefit from streamlined permitting processes and access to financial support from institutions such as the European Investment Bank and the European Bank for Reconstruction and Development. It will also be eligible for funding from the European Development Fund and Cohesion Fund.
The Czech government has recognized the Chvaletice manganese deposit as a strategic resource, reinforcing the project’s importance in ensuring Europe’s supply independence. In March 2024, the asset received environmental and social impact assessment approval from the Czech Ministry of Environment. In January of this year, Euro Manganese secured a determination of mining lease permit, marking a key milestone in the project's permitting process.
Don't forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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25 March
Top 10 Countries by Rare Earth Metal Production
Rare earth metal production was on the rise again in 2024, jumping to 390,000 metric tons worldwide — that’s up threefold from 132,000 metric tons in 2017.
Rare earths are critical in electric vehicles, renewable energy, military applications and high-tech industries. Demand for rare earth metals such as neodymium, dysprosium, praseodymium and yttrium is increasing alongside technological advancements, particularly as artificial intelligence technology gains further importance.
Ongoing tensions between the US and China, along with other geopolitical factors, are impacting the outlook for rare earths investing. Since China is the world’s largest producer of rare earths by far, the fraught relationship between the countries is directing attention to global supply chain disruption in the rare earths industry.
In 2024, 70 percent of US rare earths imports originated from China. While the United States is the second largest producer of rare earths, it trails China significantly, and its known rare earth reserves make up just 2 percent of total global reserves.
With that in mind, it’s worth being aware of rare earths production by country. Here’s a look at the 10 countries that mined the most rare earths in 2024, as per data from US Geological Survey (USGS).
1. China
Rare earths production: 270,000 metric tons
In 2024, China's domestic output of rare earths was 270,000 metric tons, up from 255,000 metric tons the previous year.
As mentioned, China has dominated rare earths production for quite some time. While China dominates global production of the vast majority of the 17 different rare earth elements, its output is heavily concentrated in light rare earths, specifically the magnet rare earths neodymium and praseodymium.
The largest rare earth mining company in the world is China Northern Rare Earth High-Tech (SHA:600111), which owns the prolific Bayan Obo rare earth mining complex in Inner Mongolia.
Chinese producers must adhere to a quota system for rare earths production. Interestingly, this system has led China to become the world’s top importer of rare earths since 2018.
The quota system is a response to China’s longstanding problems with illegal rare earths mining. For more than a decade, the country has taken steps to clean up its act, including shutting illegal or environmentally non-compliant rare earths mines, and limiting production and rare earths exports.
China’s rare earths industry is controlled by state-owned miners, in theory allowing China to keep a strong handle on production. However, illegal rare earths extraction remains a challenge, and the Chinese government continues to take steps to curb this activity.
The Chinese government is set to introduce even tougher regulations requiring companies involved in the mining, smelting and trading of rare earths to maintain detailed records of product flow and input this data into a traceability system. These new regulations took effect in October of 2024.
2. United States
Rare earths production: 45,000 metric tons
The US produced 45,000 metric tons of rare earths in 2024, up from 41,600 metric tons in the previous year.
Rare earths supply in the US currently comes only from the Mountain Pass mine in California, which is owned by MP Materials (NYSE:MP). Mountain Pass is producing high-purity neodymium and praseodymium (NdPr) oxide, a key material for high-strength neodymium iron boron (NdFeB) magnets.
The mine has had an interesting decade. Previously owned by Molycorp, the mine was put on care and maintenance in 2015 due to low rare earths prices and Molycorp filing for bankruptcy. Mountain Pass re-entered production in Q1 2018 under its new ownership.
The US is a major importer of rare earth materials. The USGS estimates the value of US rare earth imports for 2024 at US$170 million, down from US$186 million in 2023. The country has classified rare earths as critical minerals, a distinction that has come to the fore due to trade issues between the US and China.
Aiming to bolster its domestic supply, in May 2024, the US Biden administration announced a 25 percent tariff on rare earth magnet imports from China that would go into effect in 2026.
New US President Donald Trump is keen on securing the nation's critical minerals and rare earths supply chain, going so far as to threaten annexation of Greenland and Canada, both home to significant reserves of rare earths and other critical minerals. He also made access to rare earths a major sticking point in a defense deal with Ukraine.
3. Myanmar (also known as Burma)
Rare earths production: 31,000 metric tons
Myanmar produced 31,000 metric tons of rare earths in 2024. This was a decrease of more than 27 percent from the 43,000 MT of rare earths Myanmar mined in the previous year, but still up more than 158 percent from the 12,000 the nation produced in 2022. Supply was down that year due to a temporary halt in production associated with the turmoil following the 2021 military coup.
Myanmar's rare earths industry is plagued with controversy as much is reportedly carried out by unregulated small-scale miners and linked with armed militia groups with no environmental best practices or remediation plans in place. Ironically, the act of mining these metals critical for clean energy technologies such as EVs and wind turbines is itself fraught with environmentally destructive practices that are harming the waterways, wildlife and vegetation in Myanmar.
China, who shares a border with Myanmar, obtains 70 percent of its medium to heavy rare earths feedstock from its neighbor, including dysprosium and terbium. Myanmar's rare earths production, and hence China's feedstock supplies, experienced further disruptions in late 2024. Myanmar’s Kachin Independence Army seized two towns in Kachin state, near China’s Yunnan province, which are critical suppliers of rare earth oxides to China. This includes Panwa, a key rare earths mining hub.
4. Australia
Rare earths production: 13,000 metric tons
In 2024, Australia's rare earths production came in at 13,000 metric tons, down from 16,000 metric tons in the previous year. That's compared to the 24,000 metric tons produced in 2021. The country holds the world's fourth largest rare earths reserves and is poised to increase its output.
Through Geoscience Australia's Critical Minerals Research and Development Hub, the Government of Australia is looking to accelerate development of the nation's rare earths resources. Additionally, the government's National Reconstruction Fund has committed AU$200 million for the development of Arafura Rare Earths' (ASX:ARU,OTC Pink:ARAFF) Nolans rare earths project in the Northern Territory, as well as AU$400 million to Iluka Resources (ASX:ILU,OTC Pink:ILKAF) for the construction of its Enneaba rare earths refinery in Western Australia.
The leading producer of rare earths outside of China, Lynas Rare Earths (ASX:LYC,OTC Pink:LYSCF) operates the Mount Weld mine and concentration plant in Western Australia. Mount Weld ranks among the world's top rare earth mines. Lynas is slated to complete its expansion project to boost annual production of NdPr products to 12,000 MT in 2025.
Australian company Northern Minerals (ASX:NTU,OTC Pink:NOURF) is undertaking a feasibility study for its Browns Range mining and process plant; the study is due for completion in Q4 2025. Browns Range's main products will be heavy rare earths terbium and dysprosium.
5. Nigeria
Rare earths production: 13,000 metric tons
Nigeria’s rare earths production in 2024 was 13,000 metric tons, up more than 80 percent over the previous year's output level. The African nation is a newcomer to the ranks of the top 10 rare earths producing nations. As Nigeria's rare earths mining industry is still in the early stage of its development, little is known about the extent of its rare earths reserves at this time.
In late 2024, the government of Nigeria signed a memorandum of understanding with the government of France to jointly develop critical minerals including rare earths.
6. Thailand
Rare Earths production: 13,000 metric tons
Thailand’s rare earths production came in at 13,000 metric tons in 2024, up a whopping 261 percent from the prior year. The country's rare earth production has ramped up rapidly in recent years — Thailand's output of rare earths in 2018 was just 1,000 metric tons.
While there's not much information available on Thailand's rare earth industry, the country is a major source of rare earth imports for China. As far as downstream rare earths product makers, Neo Performance Materials' (TSX:NEO) subsidiary Neo Magnequench operates a rare earth magnetic materials manufacturing facility in Korat, Thailand.
Chinese electric vehicle giant BYD (OTC Pink:BYDDF,HKEX:1211,SZSE:002594) opened a US$486 million EV manufacturing facility in the country last July. The Financial Times reports that "analysts expect Chinese EV makers to penetrate further into south-east Asia because Thailand has lower tariffs on fully assembled EVs for companies that have pledged to build EV factories there, and most of them are Chinese."
7. India
Rare earths production: 2,900 metric tons
India’s 2024 production was 2,900 metric tons, unchanged from the previous few years. The country's output represents less than 1 percent of global rare earths supply. India’s rare earths production is far below its potential, considering the nation holds almost 35 percent of the world’s total beach sand mineral deposits, which are significant sources of rare earths.
India joined the Minerals Security Partnership (MSP) in mid-2023, a multi-nation group led by the United States and focused on the creation of critical mineral supply chains, including for rare earths.
Much of the country's rare earth exploration and mining is being conducted under the auspices of the Government of India via IREL, which was formed as Indian Rare Earths Limited in 1950. Furthermore, the government is establishing research and development into new technologies for extracting and processing rare earth minerals.
8. Russia
Rare earths production: 2,500 metric tons
Russia produced 2,600 metric tons of rare earths in 2024, nearly the same level as the previous six years. In terms of global rare earths reserves, Russia ranks fifth.
Prior to the country’s aggressive war against Ukraine, the Russian government was allegedly “unhappy” with its supply of rare earths. The Russia-Ukraine war has raised concerns over disruptions to the US/Europe rare earths supply chain.
Russia has reportedly reduced mining taxes and offered discounted loans to investors in nearly a dozen projects intended to increase the nation’s share of global rare earths production from the current 1.3 percent to 10 percent by 2030.
The country's largest rare earths deposit, Tomtor, is currently being developed by TriArk Mining, a joint venture owned by industrial conglomerate Rostec and billionaire Alexander Nesis. However, in November 2024 Reuters reported that Russian President Vladimir Putin accused the company of delaying its development and suggested partnering with a third party, such as the state, or raise investment.
In late February 2025, Reuters reported that the Russian government has signaled to the Trump Administration that it is interested in a rare earths development deal with the US.
9. Madagascar
Rare earths production: 2,000 metric tons
Madagascar produced 2,000 metric tons of rare earths in 2024, nearly on par with the previous year's 2,100 metric tons of output and down dramatically from 6,800 metric tons in 2021.
The country's Ampasindava peninsula is reportedly home to 628 million metric tons of ionic clays with a significant concentration of rare earths, particularly dysprosium, neodymium and europium. It's considered one of the largest rare earth deposits outside China. Whether or not it is ever developed is up in the air.
The declining in rare earths production in recent years is due in large part to increasing opposition to rare earths mining on the part of farmers who are strongly against mining activity in their communities.
In April 2024, Energy Fuels (TSX:EFR,NYSEAMERICAN:UUUU) agreed to acquire Base Resources and its advanced Toliara heavy mineral sands project in Southwest Madagascar. Energy Fuels plans to separate monazite sands from Toliara's Ranobe deposit at its White Mesa mill in Utah, US.
10. Vietnam
Rare earths production: 300 metric tons
Vietnam’s rare earths production came in at 300 metric tons in 2024, on par with the prior year's output. However, it's down 75 percent from the 1,200 metric tons produced in 2022. Vietnam holds the world's sixth largest known rare earths reserves, including several rare earth deposits against its northwestern border with China and along its eastern coastline.
The country's government is interested in building its clean energy capacity, including solar panels, and is said to be looking to produce more rare earths for its supply chain for that reason. It has set a goal of extracting and processing 2 million metric tons of rare earths per year by 2030.
However, serious corruption charges in October of 2023 that led to the arrests of top industry executives, including the chairman of Vietnam Rare Earth JSC, has hamstrung those plans. "The arrests stalled government plans to auction new rare earth mining concessions and cast a cloud of uncertainty over the industry that has given foreign investors pause," reported Asia Times.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
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25 March
March Drilling Update McLaren Titanium Project
McLaren Minerals Limited (ASX: MML) ("McLaren" or "Company"), is pleased to provide an update on the drilling program at its wholly owned McLaren Titanium Project.
Highlights
- Drilling has consistently intersected visible heavy minerals
- Additional 10m of mineral hosting sediments identified in northern area
- Metallurgical sample collected and dispatched for test work
- Pressurised saline water encountered in several holes on northern drilling lines
- Gypsum occurrence confirmed in north-western corner of EL69/2388
- First parcel of analytical samples has been dispatched to Perth for analysis
McLaren Minerals are currently exploring the McLaren Deposit located approximately 40km west of Balladonia in Western Australia by means of Air Core drilling and surface geological investigations. The 2025 exploration program is progressing well and is approximately 40% complete.
The drilling program, targeting infill drilling to a previously interpreted mineral sands strandline, should be complete by mid-April. Onsite geologists have confirmed visual mineralisation within targeted sediments and are encouraged by the consistent nature of mineralising orientation. It should be noted that visual estimates recorded during drilling activities and laboratory results do not always align.
Heavy Mineral Consistently Intersected
Drilling consistently intersected sediments hosting Heavy Minerals (HM) and it is interpreted to occupy paleo marine sediments below modern cover and are predictably identified within the elevated topographic feature. The mineral hosting sediments are observed to gently rise in an easterly orientation and overlay crystalline basement displaying a consistent heavy mineral assemblage dominated by Ilmenite and observed to contain a relatively low level of trash minerals. It is noted that a vertical extension to the historical drilling has been identified in the northern area, with current drill holes intersecting an additional 10m of mineral hosting sediments to those previously interpreted. Heavy Mineral present in the metallurgical sample grid is consistent along strike within the mineralizing beds and displays predictable mineral composition. Figure 1 below displays visual confirmation of HM observed during metallurgical test holes within the current 2025 infill drilling activities.
Figure 1: HM in drillholes - Left Image MM01, central image MM06, right image MM57
Metallurgical Sample
The samples of mineralised sediments required for metallurgical test work at IHC Mining laboratory in Queensland have been collected and dispatched. The samples were taken from 69 drillholes with those holes broadly representative of the first 5 years of planned operations (Please see Figure 2 below).
The sample equated to approximately 6 tonnes of material and will be used to validate the flowsheet designed by IHC and to complete follow up tests to allow development of a slimes management strategy for McLaren. As per previous test work (ref APS ASX Announcement 24 Sept 2024) slimes settling was achieved using addition of 3% gypsum, resulting in significant improvement in flocculant dosing rates, down to 150-200g/t.
The test work produced final products of:
- Ilmenite of a suitable grade to be classified as sulphate ilmenite
- Rutile of a typical quality with 95.7% TiO2, 1.49% Fe2O3,
- Zircon of a typical standard zircon quality, noting levels of U + Th at 265ppm were considered very low.
Water Encountered
In very positive news, pressurised water has been encountered in 3 holes being drilled in the north-western part of the known deposit area. In these holes saline water flowed freely from the hole while the rods were downhole, and in the second hole the water flow continued after rods were withdrawn and until the hole was plugged.
The groundwater occurs within a gravel terrace draping basement clays and occurs at shallow depth (approximately 20m). The crystalline basement below saprolite clays display an amount of alteration consistent to a shearing environment. The location is identifiable in regional geophysics data adjacent to a small-scale faulting feature striking approximately north south. It is likely that the gravel terrace was formed in a fluvial drainage feature, eroding and incising the softer sheared zones in the basement, later confined by overriding cover units. Further investigation will be required to determine whether the water is of sufficient volume and quality to support operations.
Click here for the full ASX Release
This article includes content from McLaren Minerals Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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21 March
Pensana Secures Full Funding for Longonjo Rare Earths Project
The Longonjo rare earths project in Angola has received all necessary approvals for full financing, amounting to approximately US$268 million, Pensana (LSE:PRE) said in an update on Tuesday (March 18).
Pensana holds an 84 percent stake in its Angolan subsidiary Ozango Minerals, the owner of Longonjo.
The money will be used to fund Phase 1 work at the project, with 60 percent coming from a US$160 million loan facility announced in late January. The Africa Finance Corporation's (AFC) board has now approved the finance institution's US$81.2 million participation in the facility, with the remainder coming from South Africa's Absa Bank.
There is also a US$15 million bridging loan from the Angolan Sovereign Wealth Fund (FSDEA), a US$54.9 million convertible loan approved by the AFC and US$38 million from the FSDEA made up of equity and a convertible loan.
Longonjo will concentrate and refine rare earths on site, producing a mixed rare earth carbonate product.
The FSDEA said its investment in Longonjo aligns with its commitment to advancing the national mining sector.
“Beyond its substantial economic impact — such as job creation and tax revenues — the project plays a crucial role in establishing in Angola a key segment of the value chain for an industry essential to the global energy transition,” FSDEA Chair Armando Manuel commented, emphasizing the mining industry's role in economic diversification.
For its part, the AFC noted that this investment reflects its commitment to unlocking Africa’s mineral potential through local value addition, industrial growth and responsible mining.
“With approximately one-third of the world’s rare earth mineral reserves, Africa is poised to become a cornerstone of the global clean energy revolution," AFC President and CEO Samaila Zubairu said.
"By investing in Africa’s rare earth sector, we are not only accelerating regional development but also strengthening global energy security in line with the aspirations of the Mineral Security Partnership."
Commentary released by Brookings in 2022 looks at the current state of the rare earths sector in Africa, evaluating whether the continent could replace China as the world’s supplier of rare earths.
The report suggests that Africa’s potential is untapped given the low levels of exploration.
It outlines several rare earths assets, including the Songwe Hill project in Malawi, which is owned by Canadian company Mkango Resources (TSXV:MKA). It is expected to commence mining this year.
Longonjo is mentioned in the study as a significant rare earths deposit.
Longonjo development timeline and impact
According to Pensana, over the past six years it has spent more than US$70 million on exploration at Longonjo, as well as on technical and environmental studies.
Infrastructure work began at the site in 2023, while main construction commenced in 2024.
A 350 person accommodation camp was completed at the site ahead of construction.
“The Longonjo project will produce an average of around 20,000 tonnes per annum of clean high value (mixed rare earth carbonate) and will have a major positive impact on the community, creating over 430 high value processing jobs,” Pensana Chair Paul Atherley said in Tuesday's release.
More than half of these jobs will be given to young people. Longonjo will create more jobs once it reaches Phase 2 production, estimated at 2,400 direct and indirect jobs.
Phase 2 operations are expected to produce 5 percent of the world’s magnet metal rare earths over a 20 year mine life.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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10 March
Globe Pens Offtake MOU with Myst for Kanyika Niobium Project
Globe Metals & Mining (ASX:GBE) has signed its second offtake agreement for Phase 1 production from its Kanyika niobium project, located in Malawi, East Africa.
In a Monday (March 10) announcement, Globe said the agreement is a non-binding memorandum of understanding (MOU) with Singapore-based physical metals and concentrates trader Myst Trading.
The company's first offtake agreement was signed with Affilips in September 2024, wherein Affilips will take 32 percent, or approximately 100 tonnes, of niobium pentoxide from Kanyika.
"The MOU with Myst confirms our significant progress in finalising offtake agreements for all Phase 1 production at the Kanyika Project,” Globe CEO Paul Smith commented in the company's release.
“Such agreements are a critical component of the Project's funding and ultimate development.”
The MOU covers Phase 1 production of the project and is for an initial period of three years from the start of production in May 2026. Phase 1 capacity is set at 10 percent of full production.
Myst will be granted the right of first refusal to purchase 25 percent of the project’s annual niobium pentoxide production, amounting to about 76 tonnes. Combined with the Affilips offtake, 57 percent of Phase 1 niobium production from Kanyika is now accounted for.
If the agreement is finalised, Myst will also secure the right to purchase 100 percent of Kanyika's high-purity tantalum pentoxide production over the three year period. This is anticipated to be about 14 tonnes annually.
Globe and Myst are currently working towards a binding offtake agreement for the second quarter of 2025. A full offtake agreement is expected in September of this year. Globe said that given Myst’s location in Singapore, the MOU will also provide it with access to the tantalum and niobium oxide markets in Asia.
Kanyika is expected to have an average annual production of 3,250 tonnes of niobium and 140 tonnes of tantalum over a 23 year mine life. The mine life is extendable to 38 years depending on the conversion of inferred resources.
The project is positioned to be the first commercial niobium operation in Africa. Artisanal miners in several African countries mine coltan, a mineral that contains niobium and tantalum.
Niobium production is currently primarily centred in Brazil, which produced 100,000 tonnes out of the 110,000 tonnes produced globally in 2024. Canada was the second highest producer of niobium at 7,100 tonnes.
Don’t forget to follow us @INN_Australia for real-time news updates!
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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05 March
American Rare Earths CEO Eyes Production at Halleck Creek in 2029
American Rare Earths (ASX:ARR,OTCQX:ARRNF,ADR:AMRRY) CEO Chris Gibbs outlined the company’s exploration plans to advance the Halleck Creek project after an updated scoping study results confirmed the asset's strong economics, scalability and strategic importance.
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