Globe Metals Announces Licence Extension

21 June 2011

London — The Australia-based company Globe Metals and Mining on Tuesday announced that the Mozambican government has extended the company’s licence covering its concession at Mount Muambe in the western province of Tete.

In early June the company released positive results from its exploration for rare earth elements in its concession. Samples taken from Mount Muambe, which is in Moatize district, found at least five zones of significant rare earth mineralization.

Rare earths are seventeen elements (scandium, yttrium and fifteen metals known collectively as lanthanides). The most significant minerals identified at Mount Muambe are heavy rare earths – which are elements 63-71 in the periodic table (from europium to lutetium).

These elements have similar chemical properties, and are used in lasers, fluorescent lamps, magnets and x-ray machines. Yttrium is also used in high-temperature superconductors.

Rare earths are considered to be strategic minerals because around 97 per cent of current production comes from China. Indeed, the largest shareholder in Globe Metals, with a 53.7 per cent stake, is the Chinese state-owned company, the East China Mineral Exploration Development Bureau.

The mine at Mount Muambe was originally prospected under a licence covering fluorite production, and the company had to apply to the government to extend the licence to cover rare earths.

According to a press release from Global Metals, the company “has always been confident this was only a formality, but an important one nevertheless, given the very positive results achieved to date”.

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