Peak Rare Earths (ASX:PEK) has signed a 12-month non-binding co-operation and development memorandum of understanding (MoU) with Minjingu Mines and Fertiliser to potentially collaborate on the development of a complementary phosphate operation.
Minjingu Mines is a privately established Tanzanian phosphate mining and fertiliser group with a customer network across Tanzania, South Africa, Zambia, Kenya, Uganda, and Rwanda.
Minjingu’s operations include its namesake phosphate mine in Tanzania, one of the only active phosphate mines in eastern Africa, where it produces a range of organic and blended fertiliser products.
Peak, which has a $67.81 million market capitalisation, says its primary focus remains on the development of its Ngualla Rare Earth Project.
However, CEO Bardin Davis says a potential phosphate operation is consistent with the company’s vision of a multi-commodity, multi-generational Ngualla project, as well as the Tanzanian government’s initiatives around enhancing agricultural yields and bolstering food security.
Minjingu Mines Managing Director Tosky Hans highlights Ngualla’s potential as a “world-class” phosphate deposit, which he says demonstrates synergies with Minjingu’s existing fertiliser supply chain.
“We look forward to working with Peak and Mamba Minerals in assessing the expedient development of a technically and commercially robust project,” he says.
Key terms of the MoU include both parties evaluating potential co-operation around the future development of Ngualla.
These include mining and beneficiation, offtake and sales arrangements, transport and logistics, and potential joint venture, co-investment, partnering, and funding structures.
A joint study group will be formed to expedite the development of a low-cost phosphate beneficiation flowsheet, within a targeted time frame of six months.
Preliminary tests on phosphate from Ngualla have already been undertaken at Minjingu Mines’ labs in Arusha, Tanzania.
Results confirm the potential use of phosphate samples gathered at the project as a direct application of phosphorus fertiliser.
According to Peak, phosphate-derived fertiliser use within Tanzania and East Africa are among the lowest globally, coinciding with strong appetite for new regional sources of supply.
Peak Rare Earths is an explorer focused on delivering the Ngualla Rare Earth Project in Tanzania.
Ngualla sits near the Ngwala Village and about 150km from the city of Mbeya in the Songwe Region and on the edge of the East African Rift Valley.
Write to Adam Drought at Mining.com.au
Images: Peak Rare Earths
