Ngualla

The Ngualla rare earth project is a planned open-pit mine on a carbonatite in southwestern Tanzania (Peak Scheme Booklet, August 2025). It sits near Ngwala Village in the Songwe Region, on the edge of the East African Rift Valley (Scheme Implementation Deed, May 2025). Peak expected more than 90% of the value of its concentrate to come from neodymium and praseodymium, the magnet metals (independent expert's report). Since September 2025 the project has been controlled by China's Shenghe Resources (Peak, September 2025). As of July 2026 it was still waiting on approvals before construction (Shenghe investor relations record, July 2026; Shenghe 2025 annual report).

Who owns the Ngualla rare earth project (as of October 2026)

Mamba Minerals Corporation holds the Special Mining Licence. Peak Rare Earths owns 84% of Mamba Minerals, and the Government of Tanzania holds an undilutable 16% free-carried interest and does not have to contribute capital (Scheme Booklet).

Shenghe first planned to buy half of Peak's Ngualla holding company under a non-binding term sheet signed in July 2024. In May 2025 the two sides dropped that plan, citing geopolitical and regulatory risk to a joint venture, and signed a binding deal for Shenghe to buy all of Peak (Peak, May 2025; see REEx on the deal). The takeover was completed on September 30, 2025, when shareholders were paid A$0.443 a share and Peak said it would apply to leave the ASX (Peak, September 2025). Shenghe's 2026 half-year report says it indirectly controls Ngualla through Peak, its wholly owned subsidiary (Shenghe half-year report, August 2026).

The Ngualla carbonatite and its bastnaesite ore

The deposit lies in the Ngualla carbonatite complex, a pipe-like intrusion about 3.8 kilometers across. Rare earths were first concentrated in the carbonatite as it formed, then weathering upgraded them to economic levels (independent expert's report). Peak describes the ore as high-grade bastnaesite with low levels of radionuclides (Scheme Booklet).

Peak's plan, as set out in its August 2025 scheme booklet, was a mine, mill and beneficiation plant averaging about 16.2 thousand metric tons a year of concentrate, containing 3.6 thousand metric tons of neodymium-praseodymium (NdPr) oxide, over an initial mine life of more than 24 years (Scheme Booklet). Shenghe's 2025 annual report describes the project differently: about 800,000 metric tons of ore processed a year, more than 50,000 metric tons a year of rare earth concentrate and oxalate concentrate, and an initial investment of about US$137 million (Shenghe 2025 annual report). Peak completed a Bankable Feasibility Study in April 2017, an update in October 2022 and a front-end engineering design study in November 2023 (independent expert's report).

The Framework Agreement with Tanzania

Peak signed a binding Framework Agreement with the Government of Tanzania on April 17, 2023, in the presence of the President. The agreement sets the basis for licensing, development, sharing of economic benefits and a joint venture with the government (Peak, April 2023). It gives Peak the right to export and sell concentrate to third parties on terms approved by the Mining Commission, while reflecting the government's policy of maximizing in-country processing where feasible (Peak, April 2023). The Special Mining Licence was granted on April 25, 2023 (Peak, April 2023), and its area was expanded from 18 to 51 square kilometers in April 2024 (independent expert's report).

Construction timing and approvals (as of October 2026)

In May 2025, Minister for Minerals Anthony Mavunde noted that the Mining Act requires medium and large-scale license holders to start mining within 18 months (The BizLens, May 2025). Peak's August 2025 scheme booklet warned that after a prolonged delay in starting construction, the government could seek to terminate the license (Scheme Booklet). On June 30, 2025, Peak announced that the Mining Commission had confirmed in writing that the license remained valid and free of any outstanding default notices (Scheme Booklet).

Shenghe's 2026–2028 development plan, published in April 2026, aims to complete construction of Ngualla in 2027 and reach large-scale production in 2028, provided it complies with national laws and regulations (Shenghe 2026–2028 plan). Shenghe's 2025 annual report said it had applied to the authorities for a technology export license and planned to finish building the mine within 12 months of receiving it (Shenghe 2025 annual report). In July 2026, Shenghe told investors that approval was still pending and gave no construction start date (Shenghe investor relations record). When Mavunde visited Shenghe in China on September 13, 2026, he regarded its projects in Tanzania as progressing smoothly, according to a Shenghe release. The release did not name Ngualla, and Shenghe also has mineral sands projects in Tanzania (Shenghe release, republished by Securities Market Weekly; Shenghe half-year report).

Who would buy Ngualla's concentrate

A binding offtake gives Shenghe 100% of the rare earth concentrate for an initial seven years on take-or-pay terms. It also contemplates later agreements covering at least half of any intermediate or separated products (Scheme Booklet). Under Peak's plan, the concentrate would first go to outside refineries, with a possible later move into mixed rare earth carbonate in Tanzania (Scheme Booklet).

Why Ngualla matters for NdPr supply

Before the takeover, Ngualla had been positioned as a possible cornerstone of rare earth supply outside China, as REEx noted when the deal was announced (REEx, May 2025). In October 2026, Shenghe proposed selling 51% stakes in four of its rare earth separation companies to a China Rare Earth Group company, and REEx's analysis said the deal may free capital for international projects including Ngualla (REEx).

Ngualla rare earth project FAQ