Maputo, June 5, 2026 (Lusa) - London stock market-listed Altona Rare Earths has announced the discovery of xenotime, a rare earth phosphate mineral, at the Monte Muambe concession, an inactive volcano in Mozambique, stating that it is produced as a by-product of the planned fluorite mining operation.
In a market announcement seen on Friday by Lusa, the company states that data from the 2025 drilling program in the area, in Tete, in the centre of the country, confirms widespread enrichment of heavy rare earths in the fluorite zone. It also highlights the identification, for the first time in the project, of xenotime — a mineral containing heavy rare earths — in the context of ongoing testing, pointing to new possibilities for economic exploitation.
“The widespread enrichment in heavy rare earth elements associated with fluorite, combined with the identification, for the first time, of xenotime at Monte Muambe, opens up a compelling path for the production of these metals as a by-product of our fluorite operation,” said the company’s chief executive, Cedric Simonet, quoted in the report.
According to the company, this configuration allows for the recovery of a marketable heavy rare earth concentrate during fluorite processing, with additional costs significantly lower than those of a dedicated operation, thereby strengthening the project’s economic viability.
In this scenario, such production "could significantly enhance the project’s value proposition and add a fourth strategic raw material to the already exceptional profile of Monte Muambe’s multiple resources," added Cedric Simonet, referring to the already identified rare earth elements (REEs), fluorite and gallium.
This update follows data released in April, which already indicated a significant concentration of heavy rare earth elements associated with the fluorite and gallium ore in the same project, at around 3,200 parts per million of total oxides, of which approximately 40% correspond to heavy metals.
Altona had then noted that these concentrations were comparable to those of relevant projects outside Asia, pointing to the potential for developing a high-value by-product within the context of fluorite mining.
The Monte Muambe project, owned by Monte Muambe Mining (MMM), includes estimated resources of 13.6 million tonnes containing 2.42% rare earth oxides, as well as significant volumes of fluorite and gallium.
Heavy rare earths are considered critical minerals due to their use in advanced technologies, including high-performance magnets, electronics, medical devices and military applications, with global production heavily concentrated in China.
On 27 February in Maputo, the US government signed a grant of US$1.875 million (€1.6 million) to study the feasibility of rare earth extraction at the concession in Tete, considering it vital to US interests.
The multinational Altona Rare Earths has already invested US$4 million (€3.4 million) in exploration for the MMM project since 2021, and the feasibility study funded by the United States Trade and Development Agency (USTDA) has since progressed.
“The project will expand and strengthen the mining sector in Mozambique, boost its economy and contribute to the responsible development of Mozambique’s natural resources,” said Abigail Dressel, who heads the US Embassy in Maputo as chargé d’affaires and who signed this grant agreement on behalf of the USTDA with MMM, a subsidiary of Altona.
"This is undoubtedly a project that brings benefits to both the US and Mozambique," she assured.
Mount Muambe is an inactive volcano, 780 metres high, situated east of Moatize in central Mozambique, with a caldera composed of carbonatites rich in blue and yellow fluorite, which in turn contain gallium.
PVJ/AYLS // AYLS
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