Altona Rare Earths announcedthis week (01.04), the discovery of a rare mineral called Gallium, of high quality and with concentrations of up to 232 g/t Ga, on Mount Muambe, in the district of Moatize, in the province of Tete.

The company points out that the mineral is strategic, and is seeing an increase in prices due to greater demand on the international market, driven by the trade war between the United States and China.

"The price of gallium is currently around 250 dollars per kg. The recent ban on gallium and germanium exports to the United States has caused gallium to reach its highest price since 2011, i.e. 585 dollars per kg in December 2024," the company said in a statement.

Gallium is a rare metal normally extracted as a by-product of zinc and bauxite ore and is used in a wide range of electronic and high-tech applications, such as radars, light diodes and semiconductors.

Gallium is considered a strategic raw material by several jurisdictions, including the European Union, and China has a near monopoly on its production.

The change in the price of gallium and the recent discoveries of high-grade gallium associated with rare earths in carbonatites have led Altona to review its drilling data for this metal.

This discovery could potentially change the economics of some of the rare earth ore bodies at Monte Muambe, in particular Target 6, by providing an additional valuable by-product. The lateral extent of the gallium mineralization is unknown and will be assessed as part of the next fieldwork campaign.

The company confirms that the fluorspar samples were delivered to the Peacocke & Simpson laboratory in Zimbabwe for gravity separation and flotation tests, and that the testing process has begun. The delay in delivery was due to logistical difficulties caused by the post-election instability in Mozambique, which has now subsided. The results of these tests are expected in April.