NeoTerra Group is expanding its Southern African rare earths strategy with a US$1.875 million US‑funded pre‑feasibility study at the Monte Muambe deposit in Mozambique. The project, estimated at 13.6 Mt grading 2.42% rare earth oxides, could deliver neodymium, praseodymium, dysprosium, and terbium – minerals vital for EVs, wind turbines, and defence. A 2023 scoping study projected US$276 million capex, an 18‑year mine life, and annual output of 15,000 t mixed rare earth carbonate.
The study, led by Valentine Enterprises with SGS North America and New Dominion Consulting, underscores Washington’s push to diversify supply chains beyond China. But Mozambique’s new mining law – mandating a 15% free‑carried state stake, compulsory local beneficiation, and domestic market allocations – reshapes the investment calculus.
For NeoTerra, alignment with policy goals is clear: beneficiation, community revenue sharing, and infrastructure commitments fit the government’s agenda. Yet reduced investor returns and enhanced state oversight highlight the risks of operating under new mining regulation geared to secure government play in mining operations.
In June 2026, Mozambique enacted a new mining law that reshapes the sector’s operating environment. The legislation grants the state a minimum, free-carried, and non-dilutable 15% stake in all new mining projects—a stake managed by the newly created Empresa Nacional de Minas (ENM).
The law also prohibits the export of unprocessed or semi-processed minerals, requiring local beneficiation, and mandates that at least 20% of production be allocated to the domestic market. Foreign contractors can only operate in partnership with local entities and must submit plans to progressively replace foreign workers with nationals.
The Chamber of Mines of Mozambique has expressed concern that the 15% free-carried state stake could affect investment attractiveness. But the government has been clear: the revision was designed to ensure the country benefits more directly from its natural resources.
The move places Mozambique firmly in the regional race for strategic minerals, alongside South Africa, Namibia, and Zimbabwe. Whether Monte Muambe advances will depend on NeoTerra’s ability to balance commercial viability with the state’s sovereignty agenda – a test case for how critical minerals projects navigate Africa’s shifting resource politics.
Editor: info@esfrontiers.co.za
