Name of the Project
Toliara mineral sands project – monazite project.

Location
The Ranobe deposit, 45 km north of Toliara on a 125.4 km² mining lease, in Madagascar.

Project Owner/s
Energy Fuels acquired Base Resources in November 2024.

Project Description
The Toliara project is underpinned by the large, high-grade, ilmenite-, zircon- and monazite-rich, Ranobe deposit, and is considered by Base Resources to be one of the best mineral sands development projects in the world.

The Toliara mineral sands definitive feasibility study 2 (DFS2), released in December 2021, estimates mining rates at 13-million tonnes a year in Stage 1, increasing to 25-million tonnes a year following the implementation of Stage 2 in Year 5 over a 38-year mine life.

Monazite was treated as a waste stream in DFS2 and was returned to the mining pit void with all other tailings.

Capitalising on what is essentially a waste stream will make the Toliara project one of the largest and most cost-competitive sources of rare-earth oxides worldwide.

The monazite prefeasibility study (PFS), released in December 2023, shows that tails from the mineral sands processing, planned under the Toliara mineral sands project, can be easily upgraded to a monazite product with modest additional capital expenditure.

Average monazite production is estimated at 21 800 t/y for 2 800 t of neodymium/praesidium over a 38-year mine life.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The DFS2 calculates an after-tax net present value (NPV), at a 10% discount rate, of $1.01-billion and an internal rate of return (IRR) 23.8%, with a payback of 4.5 years.

The monazite PFS estimates an after-tax NPV, at an 8% discount rate of $999-million and an IRR of 78.6%, with a payback of one year.

Based on the combined outcomes of DFS2 and the Monazite PFS, Toliara has an overall after-tax NPV, at a 10% discount rate, of $2.01-billion and an IRR of 32.4%, with a payback of 3.6 years.

Capital Expenditure
The DFS2 estimates capital expenditure (capex) for Stage 1 at $520-million and Stage 2 at $137-million.

Capex in the monazite PFS (Stage 1) is estimated at $71-million.

The combined DFS2 and monazite PFS have an estimated capex of $591-million.

Planned Start/End Date
Energy Fuels is targeting a financial investment decision (FID) in early 2026.

Latest Developments
Energy Fuels has signed a memorandum of understanding (MoU) with the government of Madagascar to advance the project.

This follows the Madagascar Council of Ministers’ decision on November 28 to lift the suspension on the project, originally imposed in 2019.

Consequently, Energy Fuels can resume development activities, re-establish community programmes and pursue the work necessary for a final investment decision (FID), which is expected in about 14 months.

The MoU outlines key terms agreed upon after years of negotiations and establishes a framework for the stability mechanism required to formalise the project’s financial and legal terms. Options under discussion include legislative approval of an investment agreement, amendments to Madagascar’s large-scale investment regime or other measures to ensure stability and bankability.

Under the MoU, Energy Fuels has agreed to pay a 5% royalty on mining products and deliver $80-million in development, community and social project funding after project certification. This includes $30-million within 30 days of certification, $10-million within 30 days of achieving a positive FID, and $40-million by the fourth year of operations.

Energy Fuels will also invest at least $1-million in community programmes in the Atsimo Andrefana region prior to the FID, and $4-million a year from the start of construction, indexed at 2% a year.

The Malagasy government has committed to assist Energy Fuels in obtaining the necessary permits, ensuring fiscal and legal stability for the project, and providing public support for its development. Government has also agreed not to take any direct or indirect economic interest in the project or its assets.

Energy Fuels is updating feasibility studies to reflect current economic conditions, with the Toliara project set to become a cornerstone in its portfolio of uranium, rare-earth oxides and critical mineral assets. 

Key Contracts, Suppliers and Consultants
Mineral Technologies (engineering development and capital cost estimate for the monazite concentrator plant; Lycopodium (export facility onshore infrastructure, consolidated capital cost estimate and schedule); PRDW (engineering development and cost estimate for modifications to the offshore component of the export facility to accommodate container transport and shiploading; Ibis Consulting (preliminary assessment of the environmental and social risks, impacts and opportunities of the monazite project); and Met Chem Consulting, reviewing of the monazite concentrator plant process deliverables – flowsheets, mass and water balance).

Contact Details for Project Information
Base Resources, tel +261 20 94 448 87 or email reception@basetoliara.mg.
Energy Fuels, tel +1 303 974 2140 or email info@energyfuels.com.