The United States government has approved a grant of 1.875 million dollars (1.6 million euros) to study the feasibility of rare earth extraction in Tete, Mozambique, considering it vital to US interests.
The project is being led by Monte Muambe Mining (MMM), located in an inactive volcano in central Mozambique. Since 2021, the multinational Altona Rare Earths has already invested four million dollars (3.4 million euros) in exploration, with the feasibility study now being financed by the United States Trade and Development Agency (USTDA).
“The project will expand and strengthen Mozambique’s mining sector, boost its economy, and contribute to the responsible development of Mozambique’s natural resources,” said Abigail Dressel, head of the Embassy of the United States in Mozambique, who signed the grant agreement in Maputo on behalf of the USTDA.
She added that the project will support early technical work needed to reduce risks and ultimately attract financing for the development of Mozambique’s most advanced rare earth mine, while also connecting MMM with potential US buyers of critical minerals and promoting the use of US exports in expanding the facility.
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Dressel stressed that the USTDA is “at the forefront of global efforts to strengthen US access to critical minerals essential for key industries,” calling the initiative beneficial to both countries.
MMM administrator and Altona chief executive Cedric Simonet explained that the grant will allow extensive metallurgical and process engineering work. He said the support could enable the addition of a third processing facility in Moatize, Tete province, allowing for local mineral separation rather than simple export.
He emphasized that adding value within Mozambique and the region is central to the company’s social and corporate responsibility strategy, noting that in addition to rare earths, Monte Muambe also contains fluorite and gallium.
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In a statement, the USTDA said the grant will help reduce risks associated with developing a new mine and processing facility producing materials critical to US commercial and defense interests, while strengthening resilient and diversified supply chains.
“Securing access to rare earths is essential for America’s defense industrial base and technological advantage,” said Thomas R. Hardy, adding that cooperation on the Monte Muambe project supports strategic priorities for both the United States and Mozambique.
Monte Muambe is an inactive volcano, standing 780 meters high, located east of Moatize in central Mozambique, with a carbonatite caldera rich in blue and yellow fluorite that contains gallium.
