Peak Resources making progress in Tanzania
Australia's Peak Resources (ASX:PEK) has produced a third separated high purity lanthaum oxide (REO) from bulk samples at the company's 100%-owned Ngualla rare earth project in Tanzania.
This rare earth compound can be used in batteries, cameras, optic lenses and fibre optics.
Peak Resource's mine is one of the few projects to produce high purity separated products, acccording to a company release on Wednesday.
Earlier this year the miner announced production of mid+heavy rare earth oxide and the neodymium-praseodymium rare earth oxide. In September the miner expects to produce cerium oxide.
Together, the four products represent 91% of the expected value of future production.
The rare earths miner is optimistic about "growing evidence of a turnaround in the rare earth sector," the company noted, adding that despite overall price drops in the sector, some elements are seeing pricing increases.
By current projections the company expects to become a producer of high purity REE by 2016. The mine life is estimated at 50 years.
Tanzania is Africa's fourth-largest gold producer but a relatively recent interest in the country's rare earths reserves has drawn investor attention. Many states are eager to find REE suppliers outside of China which currently meets 97% of global demand.