Tanzania’s Ngualla Project Poised to Become Major Player in Global Rare Earth Supply Chain
Peak Rare Earths is advancing what experts consider one of the world’s largest undeveloped rare earth projects, with plans to begin construction at its flagship Ngualla site in Tanzania by mid-2024. The ASX-listed company aims to become a significant producer of neodymium and praseodymium (NdPr) oxide, critical materials essential for manufacturing permanent magnets used in electric vehicles an
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Tanzania’s Ngualla Project Poised to Become Major Player in Global Rare Earth Supply Chain
Peak Rare Earths is advancing what experts consider one of the world’s largest undeveloped rare earth projects, with plans to begin construction at its flagship Ngualla site in Tanzania by mid-2024. The ASX-listed company aims to become a significant producer of neodymium and praseodymium (NdPr) oxide, critical materials essential for manufacturing permanent magnets used in electric vehicles and wind turbines.
The Ngualla project stands out in the global rare earth landscape due to its exceptional grade and scale. With ore reserves boasting average grades of 4.8% total rare earth oxide—significantly higher than comparable projects—and the ability to produce a 45% REO high-grade concentrate, the economics appear particularly robust. The current mine plan projects a 24-year operational life, though current reserves represent just 20% of the total mineral resource, suggesting substantial expansion potential.
“Ngualla provides Peak with a multigenerational asset,” notes industry analyst James Robertson. “The combination of high grade and large scale is rare in this sector, particularly outside of China.”
Tanzania’s established mining jurisdiction offers additional advantages for the project. The country has developed infrastructure including roads, rail, power, and water networks, with a deep-sea port providing ready access to export markets. Peak has secured a Special Mining License from the Tanzanian government, which maintains a 16% free carry interest in the project, aligning national and corporate interests.
The company has strategically positioned itself through key partnerships, most notably with major shareholder Shenghe Resources. This relationship has yielded a binding off-take agreement and discussions are underway for an integrated Engineering, Procurement, and Construction (EPC) contract and funding solution. Such arrangements significantly de-risk both project financing and development execution.
“The integrated approach with Shenghe leverages their proven technical and funding capabilities in the rare earth sector,” explains mining consultant Maria Kenworth. “This model has worked well elsewhere and helps address the complex technical challenges of rare earth processing.”
Market timing appears favorable for Peak’s development timeline. NdPr oxide demand is projected to outpace supply this decade, driven primarily by accelerating electric vehicle adoption and renewable energy expansion. While China currently dominates global rare earth supply chains, geopolitical tensions have highlighted the risks of concentrated production, creating opportunities for new, reliable sources from stable jurisdictions.
Peak has completed key development milestones, including a Bankable Feasibility Study, and is now focused on bringing Ngualla to a final investment decision. The company expects to complete Front End Engineering Design studies by late 2023, with early works and procurement slated to commence in early 2024. First production is targeted for 2025, potentially coinciding with forecast NdPr supply shortages.
Beyond the core rare earth focus, recent drilling at Ngualla has uncovered high-grade niobium, tantalum, and phosphate mineralization, presenting additional value opportunities. The company is also evaluating the potential to establish a rare earth processing hub in East Africa, which could improve margins while supporting regional economic development.
Peak’s leadership brings significant credibility to the project. The team includes industry veterans with experience in African mining operations and rare earth development. Chairman Russell Scrimshaw, a former founding director of Fortescue Metals Group, brings particular expertise in building major resource companies from development stage to production.
“The rare earth market is notoriously complex, with technical, regulatory and market access challenges that have derailed many aspiring producers,” says commodities strategist William Chen. “Peak’s approach of securing partnerships across the value chain while focusing on a high-grade, large-scale asset appears well-considered.”
As global decarbonization efforts accelerate, securing reliable supplies of critical minerals like rare earths has become a strategic priority for many nations and industries. With construction at Ngualla targeted to begin within months, Peak Rare Earths appears positioned to capitalize on these macro trends while offering diversification in a market that remains heavily dependent on Chinese production.
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