NeoTerra Group has applied for US$5 million in funding from the US-Africa Strategic Investment Program to assess the expansion of its Monte Muambe fluorspar project in Mozambique, Engineering News reported.
The London-listed company is currently developing a mining operation with a planned capacity of 50,000 tonnes per year, but is seeking to expand the project’s resource base with a view to scaling up production and establishing downstream processing facilities in Mozambique.
If the funding is approved, the proceeds would be used to carry out additional drilling and increase the project’s mineral resources from 716,000 tonnes of calcium fluoride (CaF₂) to four million tonnes. The company also intends to study the regional market for fluorspar and fluorine-based products, and to assess the feasibility of producing hydrofluoric acid in Mozambique.
“Our current development plan provides a clear pathway to an initial 50,000-tonne-per-year operation at Monte Muambe. We now see an opportunity to build on that foundation in a modular way and assess the potential for a broader project,” said Cédric Simonet, chief executive of NeoTerra.
According to Simonet, increasing the resource base at Monte Muambe and identifying additional fluorspar sources in the region could lay the groundwork for developing a downstream processing industry in the country.
“We want to determine whether there is sufficient scale to support hydrofluoric acid production in Mozambique,” he added.
The US-Africa Strategic Investment Program, administered by the US Department of State, has approximately US$500 million available to support critical mineral supply chains across Africa, with individual awards ranging from US$5 million to US$50 million.
NeoTerra’s application builds on an existing partnership with the US government. The company previously received US$1.88 million from the US Trade and Development Agency to advance the rare earth component of the Monte Muambe project to pre-feasibility study stage.
NeoTerra is also seeking partners and financing to develop the gallium component of the project, with a particular focus on US entities interested in securing sources of critical raw materials.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/?p=548114
