In the global race for rare earths, Mozambique has just taken on strategic significance. The US agency USTDA is funding a $1.875 million pre-feasibility study for the Monte Muambe project, operated by NeoTerra Group — a clear signal in the geopolitical battle for critical resources.
Monte Muambe: A Deposit Under the Spotlight
The Monte Muambe deposit, located in Mozambique's central Tete province, is one of southern Africa's most closely watched rare earth projects. British operator NeoTerra Group (formerly Altona Rare Earths) holds the licence.
The US Trade and Development Agency (USTDA) is directly funding the pre-feasibility study. Separately, the US Development Finance Corporation (DFC) has committed $62.8 million across several rare earths projects in the region. Valentine Enterprises will lead the study, partnered with SGS North America for metallurgical testing and New Dominion Consulting for supply chain analysis.
The Strategic Goal: Breaking China's Monopoly
China currently controls more than 85% of global refined rare earth production and an even larger share of processing. These 17 metals are essential to the permanent magnets in electric vehicles, wind turbines, defence equipment and semiconductors.
Washington's Africa strategy is built on a clear premise: the continent holds vast, largely untapped deposits and represents a viable alternative to dependence on Beijing. Monte Muambe's funding is part of a broader policy that includes «strategic critical minerals partnership» agreements negotiated with several African states since 2024.
Next Steps
Once the pre-feasibility study concludes — expected by mid-2027 — NeoTerra will need to secure funding for a definitive feasibility study, estimate construction costs, and lock in offtake agreements with industrial buyers. The road to production is long, but Washington and its partners are intent on building a credible alternative to Chinese supply.
Why It Matters
Southern Africa is becoming a central arena for critical resource diplomacy. For economic actors across the Indian Ocean — at the crossroads of flows between Africa, Asia and Europe — these developments open up logistics, port and investment opportunities worth tracking closely.
Sources: Agence Ecofin, Mining Weekly, NeoTerra Group, USTDA — August 2026