Aldoro claims global top-three REE-niobium resource

Australian mining firm Aldoro Resources has claimed a place among the world’s top three rare earth element (REE) and niobium resources following a major resource upgrade at its Narndee Igneous Complex project in Western Australia.

The company announced an updated mineral resource estimate of 344 million tonnes at 0.39% total rare earth oxides (TREO) plus 0.27% niobium pentoxide at the project’s Niobe deposit. This represents a substantial 260% increase from the previous estimate released in November 2023.

According to Aldoro’s managing director Troy Flannery, the resource upgrade places the Niobe deposit among the most significant REE-niobium resources globally, alongside Brazil’s Araxá deposit owned by CBMM and the Tomtor deposit in Russia.

“This is a transformational milestone for Aldoro as we continue to unlock the enormous potential of our Narndee Igneous Complex project,” Flannery said in a statement to investors. “The scale of this resource positions us as a potentially significant player in the global supply of critical minerals essential for the clean energy transition.”

The updated resource includes a high-grade zone of 115 million tonnes at 0.6% TREO plus 0.35% niobium pentoxide, which the company believes could provide a strategic focus for initial mining operations. Approximately 78% of the total resource is classified in the higher-confidence indicated category, with the remainder in the inferred category according to the JORC Code reporting standards.

Western Australia’s mining sector has seen increasing focus on rare earth elements and niobium in recent years as global demand for critical minerals continues to rise. Rare earth elements are crucial components in permanent magnets used in electric vehicle motors, wind turbines, and various high-tech applications, while niobium is primarily used to strengthen steel and create superconducting alloys.

Industry analysts note that Aldoro’s resource is particularly significant due to its substantial niobium content, a metal currently dominated by Brazilian production. The global niobium market is heavily concentrated, with CBMM controlling approximately 85% of worldwide supply.

“What makes this resource particularly valuable is the combination of rare earths and niobium in significant quantities,” explained Dr. James Morton, a critical minerals consultant with Resource Strategy Partners. “While several rare earth projects are being developed globally, few contain appreciable niobium, which faces its own supply constraints and growing demand from the steel industry.”

The Narndee Igneous Complex, located approximately 500 kilometers northeast of Perth, has been the focus of Aldoro’s exploration efforts since 2021. The company has conducted extensive drilling programs and metallurgical testing to better understand the deposit’s characteristics and processing requirements.

Preliminary metallurgical work indicates favorable processing characteristics for the mineralization, according to company reports. Aldoro plans to continue optimization studies while advancing environmental and social impact assessments required for future development approvals.

The resource upgrade comes amid intensifying global competition for critical mineral supplies, with Western nations increasingly concerned about China’s dominance in rare earth processing and growing resource nationalism worldwide. Australia has positioned itself as a reliable alternative supplier of critical minerals to allied nations, with government support for projects that could diversify global supply chains.

Financial markets responded positively to the announcement, with Aldoro’s shares gaining 8% in trading following the news. However, the company still faces significant challenges in moving the project toward production, including securing development capital estimated at several hundred million dollars and establishing processing capabilities for the complex mineralogy.

Industry observers caution that while the resource size is impressive, successful development will depend on overcoming technical challenges and securing offtake agreements in highly competitive markets.

“The resource grade is moderate compared to some rare earth projects, but the scale and combination of elements create significant potential,” said Mining Analyst Sarah Westbrook from Capital Markets Advisory. “Aldoro will need to demonstrate cost-effective processing solutions and secure strategic partnerships to fully capitalize on this asset.”

The company has indicated it is exploring potential strategic partnerships and offtake arrangements with parties in North America, Europe, and Asia as it advances the project toward development. A pre-feasibility study is expected to commence later this year, with results anticipated in 2025.