Highlights
- Peak Rare Earths is developing a world-class rare earth project in Tanzania.
- The project features a massive 18.5 million tonne ore reserve with high-grade NdPr deposits.
- The Ngualla Project aims to create significant economic impact.
- It is expected to generate up to 3,000 indirect jobs.
- The project plans to include local value-added processing.
- Located in politically stable Tanzania, the project offers strategic rare earth supply.
- There is potential for multi-commodity mineral extraction.
As reported (opens in a new tab) by TipRanks on April 29, 2025, Tanzanian and UK-based Peak Rare Earths Limited (opens in a new tab) is making strategic strides with its flagship Ngualla Rare Earth Project in Tanzania. During the March quarter, the company initiated key negotiations with Shenghe Resources Holding Co., Ltd.(Shenghe), aimed at a potential transaction that could significantly shape the future direction of the project.
Last year it was announced that the Chinese rare earth mining and processing company (Shenghe) was going to inject $63 million investment to acquire 50% interest in Ngualla Group UK, which owns 84% of the Ngualla Project, as reported by Mining Technology (opens in a new tab).
These discussions are being carried out in parallel with other important financial maneuvers, including raising additional capital and progressing with the sale of Peak’s Teesside site (opens in a new tab). Together, these steps are designed to enhance the company’s financial stability and operational focus.
One of the pivotal developments during this period was Peak’s receipt of land compensation approval from Tanzanian authorities—an essential milestone for project implementation. The company has also reinforced its commitment to local stakeholders by continuing its community support initiatives, a move that aligns with its broader environmental, social, and governance goals.
This progress comes at a time when the rare earth industry is experiencing notable regulatory shifts in China, intensifying the global search for stable, alternative sources of critical minerals. With increasing global demand for electric vehicles and clean energy technologies, Peak’s timely advancements could position it as a strategic supplier in the rare earths value chain.
According to information (opens in a new tab) available on the company’s website, the Ngualla Project is a standout in the global rare earth landscape. Located near Ngwala Village in the Songwe Region of Tanzania, roughly 150 kilometers from Mbeya and about 1,000 kilometers west of Dar es Salaam, the project hosts one of the world’s largest and highest-grade Neodymium-Praseodymium (NdPr) deposits. NdPr is a crucial component in the production of high-strength permanent magnets used in electric vehicles, wind turbines, and other low-carbon technologies. The Ngualla deposit features an ore reserve of 18.5 million tonnes grading 4.80% total rare earth oxides (REO), translating to an impressive 887,000 tonnes of contained REO.
The geology of the site comprises weathered carbonatite with a high-grade bastnasite-rich zone, favorably low in acid-consuming elements and radionuclides. This makes the ore not only rich but also easier and more cost-effective to process. The project envisions an open-pit mining operation with a low strip ratio of 1.77 and a throughput capacity of 800,000 tonnes of dry ore per year. Beneficiation on-site will produce a 45% REO concentrate, with an expected annual output of 37,200 tonnes of this high-grade material.
Peak has taken a forward-looking approach by planning to undertake significant beneficiation and value-adding activities within Tanzania itself, rather than exporting raw material. This aligns with government objectives for local economic development and maximizes value retention within the country. Although initial production will focus on selling high-grade concentrate, a study into downstream integration is being carried out in collaboration with the Tanzanian government. This could eventually lead to in-country refining or magnet manufacturing, further enhancing the project’s strategic value.
The construction phase of the Ngualla Project is projected to require around US$320 million and is expected to generate substantial employment, approximately 600 direct jobs and up to 3,000 indirect roles. Once operational, the mine is anticipated to sustain about 220 direct and 1,000 indirect jobs. The site already holds an environmental certificate (granted in March 2017) and has secured a Special Mining License (SML) approval from the Tanzanian Cabinet, signaling a clear regulatory path for development.
Beyond rare earths, Ngualla offers untapped potential in other minerals such as niobium, tantalum, phosphate, fluorspar, and barite, with early-stage evaluations indicating promising prospects. These additional resources could transform the site into a multi-commodity operation, offering further upside and diversification.
Situated in a politically stable nation with an established mining sector—Tanzania ranks as the fourth-largest gold producer in Africa (opens in a new tab)—the project benefits from existing transport links and proximity to the deep-water port of Dar es Salaam. The high value-to-volume ratio of rare earth concentrates ensures cost-effective logistics, enhancing the project’s commercial appeal.
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