http://allafrica.com/stories/201409250780.html?page=2
Not sure if Darren stated this but interesting
Significant opportunity and available resource to upscale production to 40,000 tonnes per annum and extend the mine life, as the base case scoping study mine plan exploits only 20 per cent of the total Mineral Resource."
According to the Managing Director of Peak Resources, Darren Townsend, "the Ore Reserve is one of the world's largest outside of China and is also of high quality with over 86 per cent in the highest JORC Proved category, the company has defined a maiden Ore Reserve of 20.7 million tons at 4.54 per cent rare earth oxides."
"Other highlights of the Pre- Feasibility Study include a 39 per cent IRR for a base case project producing 10,000 tons per annum of separated high-purity rare earth oxides; payback in the third year of production; and average annual operating free cash flow of $ 174 million for 58 years."
The Scoping Study that was done in July 2013 says, "The project remains on track to commence production in 2016. The preliminary feasibility study, to be completed by early 2014, would determine the optimum development strategy and incorporate the pilot plant test work.
Three key areas that will also be assessed are the size of the operation with respect to annual production rates, the geographical location of the separation facility and the possibility of processing rare earth carbonates from other sources outside of Ngualla."
The Mbeya Regional Miners Association (MBEREMA) is concerned about the project taking place in Ngualla. Its chairperson, Mr Leornard Mwanyeshya said, "We are aware of the project taking place in Ngualla. Unfortunately, we were not involved by the government in reaching the decision to grant a licence to the foreign company. The rare earth minerals are alluvial so we are capable of mining them." Eng Mremi responded to these complaints saying "Yes, it is true that rare earth minerals are alluvial. But, these minerals are not like gold that anyone can mine them.
As you may be aware, the rare earth minerals are a composition of 17 elements. What makes its mining difficulty is the chemistry for separation and its market. You can't mine them without having a proper market." Mr Mremi further explained that, over the years, China has dominated the production of rare earth minerals and their market. China is reluctant to purchase rare earth minerals from outside. Mr Idd Pande a small-scale miner based in Makongolosi, Chunya District said, "The government should have helped its smallscale miners to identify the uses of these minerals and their market.
There is no need to grant a licence to foreigners while locals may have the capability to mine RE if the government empowers them." According to the Scoping Study, the project when it commences in 2016, would have strong economics with a base case pre-tax net present value of US$1.768 billion and an internal rate of return of 60 per cent. Low capital cost requirement of US$373 million (excluding contingency) with a payback period within the first 3 years of production. Low operating cash costs of US$10.18 per kg Free on Board. The study further stated that annual average revenues of US$378 million at 10,000 tonnes equivalent rare earth oxide production, are expected. Life of mine in excess of 50 years, "based solely on the Indicated and Measured portions of the weathered Bastnaesite Zone Mineral Resource. "Significant opportunity and available resource to upscale production to 40,000 tonnes per annum and extend the mine life, as the base case scoping study mine plan exploits only 20 per cent of the total Mineral Resource."
Also, Peak Resources Limited was set to become a large producer of the critical rare earths Neodymium and Praseodymium. In the five months since 1 July 2013, prices for high value rare earths including neodymium, praseodymium and europium that are abundant in Ngualla have improved substantially. Neodymium, the largest single contributor at 48 per cent of Ngualla's predicted revenue, has increased in price by 36 per cent. Praseodymium and europium, the next two highest revenue contributors, have also seen price increases of 50 per cent and 18 per cent.
Together, these more than offset falls in the lower value cerium and lanthanum, which together make up just 14 per cent of Ngualla's predicted revenue, leading to an overall increase of 22 per cent in Ngualla's "basket price". According to the environmental and mining legislations in Tanzania, Environmental Impact Assessment (EIA) is a pre-requisite prior to the issuance of the mining licence. Both, the Environmental Management Act, 2004 and the Mining Act, 2010 require the EIA to be conducted before the commencement of any project. Mr Jamal Juma is a Programme Officer at the Lawyers Environment Action Team. He sees the importance of the EIA by saying, "Environmental laws are very important.
They regulate human interaction with environment. Their principles are for sustainable development, intergenerational and intragenerational equity, transparency and public participation. EIA is so important for anticipation and minimisation of environmental damage." When asked if Environmental Impact Assessment was conducted in Ngualla, the Resident Mines Officer, Eng Mremi responded that, Peak Resources are currently undertaking the feasibility study that precedes the EIA as long as their licence is still for exploration and not exploitation.
According to the Ngualla Rare Earth Project Scoping Study that was released in July 2013, rare earth minerals discovered in Ngualla are not radio-active. They have the lowest level of uranium (14ppm) and thorium (42ppm) of any major rare earth deposits. The process of benefication, hydro-metallurgical and solvent extraction reduce the risk of the project. Also, there is no significant unique, rare or endangered species and fauna reported.
(20min delay)