Rare earths developer Peak Rare Earths has been granted a special mining licence for its Ngualla rare earths project in Tanzania.

The grant of the special mining licence follows the signing of a binding framework agreement with the government of Tanzania earlier this month, and will initially cover a 30-year term over an 18.14 km2 area which contains the Ngualla project deposit.

In accordance with the framework agreement, the special mining licence area will be expanded in the future to include an existing prospecting licence and a recently expired prospecting licence, while the initial term of the licence will also be amended to the shorter of 33 years and the life of the mine, with the ability to extend on application in accordance with the law at the time.

A recently updated bankable feasibility study (BFS) estimated that the project would require a capital investment of $321-million and would support the production of 16 200 t/y of concentrates.

The updated BFS estimated a mine life of 24 years, and annual operating costs at $93-million a year, with the project expected to generate yearly average revenues of $538-million a year and operating cashflows of $276-million a year.