ASX-listed mining company Peak Rare Earths (ASX:PEK) has been granted a special mining licence (SML) for the Ngualla Rare Earth Project in Tanzania.
The company reports the SML was granted to Peak’s 84%-owned subsidiary Mamba Minerals Corporation, which is shared with the Tanzanian government, and notes it will initially cover the area set out in the original SML application of about 18.14km² over a term of up to 30 years.
In accordance with the terms of the recently signed framework agreement between Peak and the Tanzanian government, the SML area will be expanded in the future to include an existing prospecting licence, and a recently expired prospecting licence.
The initial term will also be amended to be the shorter of 33 years and the life of mine, with the ability to extend on application in accordance with the law at the time.
The granting of the SML follows the signing of a binding framework agreement between Peak and the Tanzania government on 18 April 2023.
This framework agreement sets out the basis of the Tanzanian government’s agreement for the licensing, development, economic benefit sharing, and the formation of a joint venture to develop and operate Ngualla.
Peak reports Ngualla will initially be developed to produce a ‘high-grade’ concentrate for export to third-party refiners, with a recently signed non-binding strategic and concentrate offtake memorandum of understanding (MOU) signed with its largest shareholder, Shenghe Resources (SHA:600392) underpinning this strategy.
The company says it will focus on completing key technical and commercial work streams ahead of a targeted final investment decision (FID) by the end of September 2023, with construction planned for October 2023.
Peak Rare Earths is an ASX-listed exploration company focused on delivering the ‘high-grade’ Ngualla Rare Earth Project in Tanzania. The company also holds an option of a refinery in Teesside in the UK to potentially produce ‘high-grade’ REE concentrate or mixed REE carbonate.
Images: Peak Rare Earths Ltd