US Backs Altona’s Mozambique Rare Earths Project

Why It Matters

U.S. support strengthens strategic mineral supply chains and de‑risks Altona's path to commercial production, signaling broader geopolitical shifts in rare‑earth sourcing.

Key Takeaways

• USTDA supports Monte Muambe technical and financial planning
• Altona's shares jumped 76% after U.S. backing
• Monte Muambe hosts rare earths, fluorspar, gallium
• Altona's stake rises to 70% post‑prefeasibility
• Mining licence extends to 2049, ensuring long‑term production

Pulse Analysis

The United States has intensified its focus on securing critical mineral supply chains, and the USTDA’s involvement in Altona’s Monte Muambe project underscores that strategy. By providing technical assistance and financing pathways, the agency helps mitigate the geopolitical risks associated with reliance on China for rare‑earth elements, which are essential for high‑strength magnets used in defense systems and the clean‑energy transition. This partnership reflects Washington’s broader policy to foster allied sources of strategic minerals, positioning Mozambique as a potential hub for diversified production.

Monte Muambe, located in Mozambique’s Tete Province, hosts a polymetallic suite that includes heavy‑rare earths, fluorspar and gallium. Altona currently controls 51% of the project, a share slated to rise to 70% once the ongoing prefeasibility study concludes, and it holds a 25‑year mining licence extending to 2049. Recent drilling campaigns targeting fluorspar and gallium are expected to yield assay results that could justify a separate fluorspar mining operation, adding revenue streams and enhancing the project's overall economics. The technical data will feed into a detailed resource model, informing both capital budgeting and potential off‑take agreements.

The market reaction has been swift, with Altona’s stock rallying more than three‑quarters in a single trading session, highlighting investor appetite for assets that align with U.S. strategic priorities. Beyond the immediate share price boost, the development could reshape the regional mining landscape, attracting further foreign investment and infrastructure development in Mozambique. As the energy transition accelerates, demand for rare‑earth magnets and related materials is projected to grow, making projects like Monte Muambe pivotal for meeting future supply needs while reducing dependence on single‑source exporters.

US backs Altona’s Mozambique rare earths project

Staff Writer · February 9, 2026, 3:57 am

Monte Muambe is in the Tete Province, north‑western Mozambique, near Moatize. (Image courtesy of Altona Rare Earths.)

Shares in Altona Rare Earths (LON: REE) surged after the company announced that the U.S. government confirmed its intention to support development of the Monte Muambe project in Mozambique. The stock was up more than 76 % at 2.29 pence by mid‑afternoon in London, lifting the critical raw materials explorer’s market capitalization to £4.25 million ($5.8 million) after it confirmed backing from the U.S. Trade & Development Agency (USTDA).

Altona said the USTDA’s involvement is aimed at defining the technical and financial pathway to develop Monte Muambe, which targets rare‑earth elements used in high‑strength permanent magnets, defence applications and energy‑transition technologies. The project also hosts fluorspar, a mineral used in industrial and chemical processes.

The company expects assay results soon from a recent fluorspar and gallium drilling campaign and said the resulting mineral‑resource estimate should demonstrate that the fluorspar component represents a viable standalone mining project.

Chief executive officer Cedric Simonet said the U.S. backing reflects the project’s growing strategic importance and its potential role in strengthening global supply chains for rare earths and fluorspar.

Altona holds a 51 % interest in Monte Muambe, which will rise to 70 % once it completes the ongoing prefeasibility study, and it holds a 25‑year mining licence that runs through at least 2049.