Peak picks UK for refinery

PERTH (miningweekly.com) – ASX-listed Peak Resources has selected a site for its proposed rare earth refinery, at Tees Valley, in the UK.

Peak told shareholders that the UK site was selected to better position the company to establish a rare earth refinery at a location with access to global shipping, cheap and reliable bulk reagent supplies, a skilled labour force, readily available power, water and environmentally sustainable options to dispose of tailings material.

“The choice of Tees Valley as the location for a rare earth refinery is compelling. Tees Valley will be the base case in the bankable feasibility study (BFS) currently being completed; however, the company is also evaluating additional routes to market scenarios to provide the company with maximum flexibility and options relevant to today’s market environment,” said Peak MD Darren Townsend.

He noted that while the long-term impact of the UK's withdrawal from the European Union (Brexit) was not yet fully understood, the devaluation of the pound was expected to improve the operating costs of the refinery, and the UK’s progressive stance on maintaining competitive corporate fiscal regimes post Brexit, was also positive.

Peak will pay an option fee of £60 000 and enter into a 24-month option agreement to purchase a 16.3 ha property, with the purchase price to be some £2.4-million.

Meanwhile, Peak is on track to complete the BFS for its Ngualla project, in Tanzania, in the first half of 2017.

Previous studies on the Ngualla project indicate that it will require a capital investment of some $330-million to produce 10 000 t/y of rare earths over a mine life of around 50 years.

Permitting activities for the rare earth refinery have also started, with the planning permission and environmental permit anticipated to be granted in 2017.