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On August 20, 2026, NeoTerra Group, a London-listed critical minerals company, announced that it has selected Valentine Enterprises to lead a $1.875 million pre-feasibility study for the Monte Muambe rare earth project in Mozambique. The study is funded by the U.S. Trade and Development Agency (USTDA) and marks a key step in Washington’s effort to secure alternative sources of rare earth elements outside China.
The appointment was disclosed in a regulatory filing through the London Stock Exchange. Valentine Enterprises will coordinate the study, supported by SGS North America and New Dominion Consulting. The team’s selection is subject to final USTDA approval, but NeoTerra expects the work to kick off in September with a site visit to Monte Muambe in Mozambique’s northwestern Tete province, followed by a short drilling campaign to collect representative mineral samples.
The pre-feasibility study aims to examine extraction and processing methods, estimate development costs, and assess the technical and commercial viability of the project. It builds on a preliminary scoping study completed in 2023, but NeoTerra emphasizes that construction is still far off. The company would need more detailed engineering, environmental approvals, project financing, and a final investment decision before any mine could be built.
NeoTerra CEO Cedric Simonet said the three firms bring “a reputation for excellence” and the technical expertise needed to advance the project, particularly in understanding American supply chains. “Valent, SGS and New Dominion all bring a reputation for excellence, and together they’re the right team to deliver this study,” he stated in the regulatory announcement.
The USTDA first signaled its support for Monte Muambe in February 2026, when it awarded a $1.875 million grant for the study. The agency then opened a competitive process restricted to U.S. companies, with the proposal deadline extended to May 11 before Valentine Enterprises and its partners were selected. The latest announcement confirms the contractor, not new funding.
Monte Muambe is located in Moatize district, Tete province, Mozambique’s main coal-producing region. NeoTerra has reported a mineral resource of 13.6 million tonnes grading 2.42% total rare earth oxides under the JORC standard. The deposit contains neodymium and praseodymium—key ingredients for high-strength permanent magnets used in electric vehicles, wind turbines, electronics, and industrial machinery. It also hosts heavy rare earths like dysprosium and terbium, which are critical for high-temperature applications in electric motors and defense systems.
A 2023 scoping study estimated an initial capital investment of $276.3 million for an open-pit mine processing 750,000 tonnes of ore annually, producing an average of 15,000 tonnes of mixed rare earth carbonate per year over an 18-year mine life. The study projected a post-tax net present value of $283.3 million, an internal rate of return of 25%, and a payback period of 2.5 years. However, those figures are preliminary and subject to change based on the upcoming pre-feasibility study.
The U.S. government’s backing of Monte Muambe is part of a broader push to reduce dependence on Chinese rare earths. According to the Congressional Research Service, citing U.S. Geological Survey data, China produced about 270,000 tonnes of rare earth oxide equivalent in 2025, compared to just 51,000 tonnes in the United States. China’s dominance is even stronger in processing and permanent magnet manufacturing, which are more technically complex and commercially valuable.
This dependency became a national security concern after China introduced export controls on seven heavy rare earth elements in April 2025, later expanding restrictions to additional materials. The measures accelerated American efforts to secure alternative supplies, with Washington supporting other African critical-mineral projects, including the Longonjo project in Angola and the Phalaborwa development in South Africa.
NeoTerra, formerly known as Alton
