Peak's rare earth project to cost $475m

Peak Resources has progressed its majority owned Ngualla rare earth project in Tanzania with the release of a bankable feasibility study today, which revealed a development capex of $US356 million ($A475 million).

Perth-based Peak said today it had reduced forecasted project operating costs by $US35 million per annum in the BFS, which detailed a 30-year mining operation at the Tanzanian project with about 28,000 tonnes per year of concentrate to be shipped to a refinery to be built in Tees Valley in the UK.

According to the company, the proposed UK refinery would have access to global shipping, cheap and reliable bulk reagent supplies – particularly hydrochloric acid and caustic soda – as well as readily available power, water and environmentally sustainable options to dispose of tailings materials.

The Ngualla project is 75 per cent owned by Peak, with Appian Natural Resources Fund owning 20 per cent and global development institution IFC holding a 5 per cent share.

The BFS was completed in partnership with engineering firm Amec Foster Wheeler.

“The Ngualla project has the potential to be one of the world’s lowest operating cost fully integrated rare earth producers, and we believe is perfectly positioned for the expected increase in magnet metal prices driven by the forecast enormous growth in e-mobility and low carbon technologies,” Peak managing director Darren Townsend said.

The company will now look to moving to front-end engineering and design after finding appropriate funding partners.

Peak shares were 3.2 per cent higher to 9.5 cents each at 10:30am.