Mozambique has the necessary ingredients to position itself as one of Africa’s leading producers of critical minerals, provided it continues to create conditions to transform its extraordinary geological potential into investment and economic development. These statements were made to E&M by the CEO of Altona, the company preparing to implement the country’s largest rare earths project.
The Monte Muambe project is being developed by Monte Muambe Mining Limitada, a Mozambican company supported by investment from Altona Rare Earths, a British mineral exploration and development company.
The project is advancing rapidly at a time when global demand for rare earths is intensifying. Located in Tete province, it is in the advanced study phase and represents one of Mozambique’s most promising bets in the exploration of critical minerals, positioning the country as a potential key player in this emerging market. With investments already made and strong prospects for expansion, Monte Muambe illustrates both the opportunities and challenges faced by such projects.
In a highly competitive global environment, the success of this and similar projects could serve as an indicator of Mozambique’s ability to turn its mineral potential into sustainable economic development, according to Altona CEO Cedric Simonet.
Recently, the United States announced support of US$1.9 million for the Monte Muambe project (after Altona invested around US$4 million in exploration between 2021 and 2025). This may be interpreted as an effort to secure a position in the rare earths industry, currently dominated by China. What impact could U.S. support have on the competitiveness of your project?
It is important to understand that rare earths consist of 15 different elements, unlike other resources such as gold, which are extracted in a more straightforward way. The process of extracting and separating the 15 elements from rocks is complex. A project like Monte Muambe requires high investment as well as the development of new technologies. The U.S. administration aims to support the development of these technologies, but also to ensure future access to resources.
“The world needs to develop alternative rare earth supply chains, which are essential for new technologies… Outside China, this is a completely new industry.”
China began developing its rare earth industry more than 40 years ago and is now highly advanced. The rest of the world must now build its own industry, involving cooperation between resource-rich countries and countries that host end-product markets.
Altona has so far invested nearly US$4 million in the project and continues to invest. U.S. support is focused on separation methodologies and engineering, which are crucial at this stage. However, the project still requires further investment, and once in production, total investment could exceed US$200 million.
Given China’s dominance of the rare earth value chain, how advantageous is it to build an alternative outside the Chinese sphere, as is the case with Monte Muambe?
China invested in building its rare earth industry while the rest of the world, in a sense, was asleep. This created a near-monopoly situation. In today’s geopolitical context, rare earth supply and products have become an important tool in global economic competition. At present, rare earth value chains are polarised and aligned with global geopolitics. However, I believe that in the future we will see greater integration between Chinese value chains and new value chains in the rest of the world.
How does Altona view Mozambique’s rare earth market in terms of global competitiveness, considering its reserves and mineral quality?
A very important issue for mineral-rich African countries like Mozambique is value addition, in order to broaden economic benefits and improve living standards. That is why we aim to add as much value as possible in Mozambique.
Initial studies for Monte Muambe envisage a three-stage process: ore extraction, initial processing to produce a rare earth concentrate, and a hydrometallurgy stage to extract rare earths from the concentrate and produce a more refined product called mixed rare earth carbonate. In the advanced studies phase, we are also assessing the feasibility of partially separating neodymium and praseodymium in Mozambique.
However, further downstream processing stages are unlikely to take place in Mozambique, simply because they need to be located closer to end-use markets. For example, producing permanent magnets in Mozambique would be very difficult due to the distance from consumer markets. An electric vehicle manufacturer using magnets does not want to store inventory; it wants weekly deliveries from the factory.
Do the stages of the value chain you mentioned have a timeline for implementation?
We are still assessing the best options for project development. We want to begin production as soon as possible, but we also want to maximise value addition in the country, which requires more time for studies.
What factors could accelerate or hinder the project’s progress?
Mozambique has an adequate legal framework for mining development, but as in many emerging markets, there is room to simplify administrative procedures and improve efficiency. Streamlining certain processes could benefit government, investors, and communities alike.
Mining companies already face many challenges: technical project complexities, commodity price volatility, production cost fluctuations, and financing uncertainties. On the government side, administrative processes should be simplified. In my view, the government’s main role should be to facilitate investment and regulate the sector.
Can you give examples?
A typical example is the difficulty of obtaining a tax clearance certificate. The process is very slow, often taking weeks. Moreover, the certificate is not general; it includes a note stating it can only be used for a specific purpose.
By comparison, in Kenya, tax clearance certificates are issued online. There is no need to visit any institution or speak to anyone. The request is made through the tax authority’s digital system, and if the taxpayer is compliant, the certificate is issued within an hour. Its authenticity can be verified via QR code and it is valid for six months. Kenya is an interesting example of administrative digitalisation, and similar solutions could be implemented in Mozambique as public services modernise.
Why is the Monte Muambe project only now gaining traction after more than a decade of geological knowledge?
Monte Muambe was previously known as a fluorite deposit. Fluorite is also a critical mineral but with a mature market and many applications. In 2010, exploration work at Monte Muambe discovered rare earths. However, at that time, the energy transition was not as prominent and the rare earth market was still limited.
The market began to expand between 2019 and 2020, during the Covid-19 period, when many rare earth projects emerged globally.
When we started working on Monte Muambe in 2021, I had a list of 15 to 20 comparable projects worldwide. Today, there are more than 400 projects globally, driven by the shift toward energy transition policies and the demand for green energy, which relies heavily on rare earths.
What role could Mozambique play in the global critical minerals chain in ten years?
First, Mozambique is already a significant producer of critical minerals, especially graphite: the Balama mine hosts one of the world’s largest natural graphite resources. I believe Mozambique has enormous geological potential, but it remains underdeveloped.
Take lithium, for example, used in batteries for vehicles, mobile phones, computers, and solar storage systems. Mozambique has strong potential, but exploration is still limited. Zimbabwe, by comparison, is much more advanced and is now considering adding value domestically. The Mozambican government should facilitate exploration and development, whether by large or small, local or international companies.
If properly developed, how far could rare earths take Mozambique’s economy?
If a strong mining industry develops, many other economic activities tend to emerge around it—services, equipment supply, logistics, and more. This ecosystem contributes to GDP growth. This has happened in countries such as Zimbabwe and South Africa and is currently happening in Tanzania. It can also happen in Mozambique.
“Mozambique has extraordinary geological and mining potential. Continued administrative modernisation could accelerate the development of this potential.”
The Monte Muambe project is located in Tete. Are there signs of rare earths in other parts of the country?
Yes. The rock type at Monte Muambe is carbonatite, and similar occurrences exist in other parts of Mozambique. Each deposit is different, with its own characteristics and challenges. It is worthwhile for other companies to conduct exploration, identify new deposits, and carry out the necessary studies.
What short-term steps could reduce administrative bottlenecks while promoting regional cooperation in mineral development?
A form of resource nationalism is emerging globally, particularly in Africa, which is understandable. However, governments should consider two key aspects of the new mining industry reality.
First, mine profitability depends on production costs and commodity prices, regardless of whether the product is rare earths or construction stone. Simply being a “critical mineral” does not guarantee viability. Overburdening projects with additional costs will not promote development. Policies must balance national value capture with competitiveness to attract investment.
Second, the key to sustainable development of critical minerals in Africa is not nationalism but regionalism. African governments should cooperate. For example, Zimbabwe has lithium but needs fluorite for value addition; Mozambique has fluorite. There is room for regional cooperation that could benefit both countries.
Text: Celso Chambisso • Photography: D.R
