Last checked at 
(Alliance News) - Base Resources Ltd on Thursday said a pre-feasibility study on the production of monazite "significantly enhanced" the forecast financial returns from the Toliara project in Madagascar.
The Africa-focused mineral sands producer and developer said the monazite pre-feasibility study has doubled the Toliara project's overall net present value to USD2.0 billion on a post-tax basis from USD1.0 billion before.
Tim Carstens, managing director of Base Resources, said: "Put simply, the outcomes from our Monazite PFS reinforce our belief that Toliara is the best undeveloped mineral sands project in the world. Unsurprisingly, adding another critical mineral stream through concentrating what would otherwise have been 'waste' from the mineral sands processing has materially improved the forecast financial performance of the project, with a 100% increase in NPV and free cash flow of almost USD10.6 billion over the initial modelled life of the project. Utilising the waste stream as an essentially free source of monazite feed will make the Toliara Project one of the largest and most cost-competitive sources of rare earth oxides globally."
He added: "We have always believed in the Toliara project's potential to be a catalyst for growth in Madagascar, creating transformational opportunities for our communities, economic stimulus for the Toliara region and being a flagship investment for the government. The addition of the monazite product stream enhances these opportunities for all stakeholders, with the project now forecast to generate over US$4.7 billion in direct government revenue and community development expenditure over the initial 38-year mine life."
Monazite is a hard, resistant waxy mineral that can be described as red, green and brownish and is commonly used in engines such as wind turbines. Monazite sand is used in construction and casting.
Base Resources shares rose 7.2% to 6.70 pence each on Thursday morning in London.
By Tom Budszus, Alliance News slot editor
Comments and questions to newsroom@alliancenews.com
Copyright 2023 Alliance News Ltd. All Rights Reserved.
