Peak Resources Announces Updated PFS for Ngualla Project in Tanzania

Mar. 20, 2016

Reduction in capital and operating costs

On March 16th Australia-based Peak Resources announced results of an updated Pre-Feasibility Study (“PFS”) for its Ngualla rare earth project in Tanzania.

The updated PFS sees a 10% reduction in pre-production capital costs to USD $330 million and an 18% reduction in annual operating costs to USD $97 million.

Shortened mine life to include only high-grade weathered zone

The mine life of the project has been reduced to 31 years from 58 years so as to only include production from the high-grade weathered bastnaesite zone – a zone that comprises just 22% of the Ngualla overall resource by contained TREO.

Average annual TREO production has been reduced from 10,062 tonnes to 6,720 tonnes owing to the elimination of a major proportion of deleterious cerium contained in ores during hydrometallurgical processing.

Consequently, the updated PFS sees unit production costs increase from approximately USD $12 per kilogram TREO to USD $16 per kilogram TREO, but this increase is more-than-offset by a higher basket value due to a reduction in the amount of low-value cerium oxide produced.

Plan to build and operate a rare earth separation plant in Europe

The updated PFS entails plans to build and operate a USD $95.6 million rare earth separation plant in Europe that will produce a mixed neodymium-praseodymium oxide, a mixed lanthanum-cerium carbonate, and a mixed samarium-europium-gadolinium-HREO carbonate.

Overall, the updated PFS reaffirms Ngualla’s place as one of the most economically-promising rare earth projects globally.

At conservative long-term forecasted rare earth prices, we believe the Ngualla project could payback its pre-production capital expenses in less than four years, and thereafter yield a 46% pre-tax operating profit margin.


Page 1 Created with Sketch. Back to overview

Join Our Mailing List


We’ll keep you posted on the latest news and developments affecting markets and supply chains.


Rare earths, lithium, nickel, cobalt, batteries, motors and more.


You have successfully subscribed! We look forward to keeping in touch.