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Australian firm to earn $361m from Tanzania rare earth project
By KENNEDY SENELWA Special Correspondent
THE EAST AFRICAN
Posted Saturday, February 23 2013 at 17:23
In Summary
Peak Resources is expected to earn $361 million annually as revenue when the Ngualla rare earth project begins production in southern Tanzania. The Australian firm plans to build a pilot solvent extraction (SX) plant to process raw materials from Ngualla near Mbeya town before commercial production of high value rare earth oxides starts in 2016.
Ansto Minerals has been appointed to build and operate the SX plant to produce samples for evaluation by clients. Rare earth oxide products are used to make electronic devices and optical quality glass.
Shaw Stockbroking Ltd said Ngualla is among its top three rare earth projects outside China
and its scooping study projects $361 million as annual revenue, $1.57 billion pre-tax net profit value and 53 per cent internal rate of return.
"We see the next six months as determining how robust Ngualla is and if it can attract a strategic partner at both the project and equity level," said Shaw's head of research strategy Martin Crabb in a research note.
Ngualla, which is 100 per cent owned by Peak , has mineral resources of 170 million tonnes, which is one of the largest and highest grade rare earth deposits in the world. China has the highest amount of rare earth deposits.
"In two years since discovering the Ngualla deposit and starting behind the rest of the emerging rare earth producers, Peak has fast tracked development and continues to differentiate itself as a company that delivers," said Richard Beazley Peak's managing director.
By KENNEDY SENELWA Special Correspondent
THE EAST AFRICAN
Posted Saturday, February 23 2013 at 17:23
In Summary
- The firm plans to build a pilot solvent extraction (SX) plant to process raw materials from Ngualla near Mbeya town before commercial production of high value rare earth oxides starts in 2016.
Peak Resources is expected to earn $361 million annually as revenue when the Ngualla rare earth project begins production in southern Tanzania. The Australian firm plans to build a pilot solvent extraction (SX) plant to process raw materials from Ngualla near Mbeya town before commercial production of high value rare earth oxides starts in 2016.
Ansto Minerals has been appointed to build and operate the SX plant to produce samples for evaluation by clients. Rare earth oxide products are used to make electronic devices and optical quality glass.
Shaw Stockbroking Ltd said Ngualla is among its top three rare earth projects outside China
and its scooping study projects $361 million as annual revenue, $1.57 billion pre-tax net profit value and 53 per cent internal rate of return.
"We see the next six months as determining how robust Ngualla is and if it can attract a strategic partner at both the project and equity level," said Shaw's head of research strategy Martin Crabb in a research note.
Ngualla, which is 100 per cent owned by Peak , has mineral resources of 170 million tonnes, which is one of the largest and highest grade rare earth deposits in the world. China has the highest amount of rare earth deposits.
"In two years since discovering the Ngualla deposit and starting behind the rest of the emerging rare earth producers, Peak has fast tracked development and continues to differentiate itself as a company that delivers," said Richard Beazley Peak's managing director.