Revival of Madagascar's Toliara Minerals Project: A New Chapter for Critical Minerals

Toliara Minerals Project

Madagascar's government has officially ended the suspension on the Toliara critical minerals project, signaling a significant step forward in the exploitation of key mineral resources after a prolonged five-year break. This move paves the way for the resumption of mining activities critical for global industries, particularly in the production of titanium and zirconium.

Unlocking Potential: Toliara's Rich Resource Base

The Toliara project, initially stalled in November 2019 due to negotiations over fiscal terms, holds a comprehensive mining permit for extracting valuable minerals such as ilmenite, rutile, and zircon. These materials are essential for various industrial applications, including manufacturing aircraft, electronics, and ceramics. The project's development promises substantial outputs, with a feasibility study projecting an annual production capacity of 1.03 million tonnes of zircon, rutile, and ilmenite over a 38-year lifespan.

Strategic Developments and Future Prospects

The project's rejuvenation follows the acquisition of Base Resources, the original project owner, by US-based Energy Fuels in October 2024. This acquisition aligns with Energy Fuels' strategic interests in diversifying their mineral portfolio, especially focusing on monazite, a mineral sand rich in rare earth elements. These elements are crucial for Energy Fuels' operations at the White Mesa mill in Utah, where they aim to produce rare earth oxides.

Energy Fuels plans to reach a financial investment decision (FID) on the Toliara project by early 2026 and is exploring the addition of rare earth elements to the mining permit, expanding the project's scope and potential market impact.

Energy Fuels Reports 2024 Loss on Acquisition Costs, But Advances in Rare Earths Signal Long-Term Strategy

Energy Fuels

U.S. Miner Eyes NdPr Qualification, Expands Heavy Mineral Sands Sales After Australian Acquisitions

Energy Fuels Posts $48 Million Loss in 2024 Amid Strategic Expansion into Rare Earth and Mineral Sands Markets

Energy Fuels, a U.S.-based critical minerals producer, swung to a $48 million net loss in 2024, compared with a $99.76 million profit in 2023. The loss stemmed primarily from one-time acquisition and integration expenses tied to the purchase of Base Resources and its Donald Project in Australia. These expenses totaled $10.34 million and included increased operating costs from inherited personnel and reclamation liabilities.

Despite the financial dip, the acquisitions have significantly expanded Energy Fuels' footprint in heavy mineral sands and rare earth elements (REE), positioning the company for long-term strategic growth.

Heavy Mineral Sands Sales Strengthen While Rare Earth Separation Advances in Utah

In 2024, the company sold 17,529 tonnes of rutile, 48,302 tonnes of ilmenite, and 2,477 tonnes of zircon, generating $39.87 million in revenue from its mineral sands segment. The assets acquired include Kenya’s Kwale project, Madagascar’s Toliara project, and the Donald Project in Victoria, a joint venture with Astron Resources containing zircon, ilmenite, and untapped REEs.

Meanwhile, at its White Mesa Mill in Utah, Energy Fuels completed Phase 1 commissioning of its rare earth separation circuit, producing 38,000 kg of NdPr and 9,000 kg of high-purity heavy RE carbonates (including samarium and others). The company has sent NdPr samples to magnet manufacturers, seeking qualification for permanent magnet use, a key precursor to securing long-term offtake agreements.

Pathway to 60,000 t/yr Throughput and Expanded REE Output

The company is now updating its pre-feasibility study (PFS) for White Mesa to increase monazite feed capacity to 60,000 tonnes per year. The proposed upgrade targets annual output of 6,000 tonnes of NdPr, 150–225 tonnes of dysprosium, and 50–75 tonnes of terbium. The newly commissioned Phase 1 circuit accounts for about 17% of the full capacity, equivalent to 10,000 t/yr of monazite feed.

With rising geopolitical pressure to localize critical minerals supply chains, Energy Fuels continues to diversify away from uranium and strengthen its vertical integration in rare earths and heavy minerals.

Energy Fuels Expands Rare Earth Production, Targets Key Elements for High-Tech Applications

Energy Fuels, a leading U.S. producer of uranium and rare earth elements (REEs), is set to significantly increase its production of neodymium-praseodymium (NdPr) in the third quarter of 2024. This follows the successful commissioning of the first phase of its commercial-scale rare earth separation circuit at the White Mesa uranium and vanadium mill in Utah, which began operations in the April-June quarter.

The company produced approximately 12 metric tons of separated NdPr during the second quarter, which remains in inventory, alongside an additional 9 metric tons of high-purity, partially separated mixed rare earth carbonate. Energy Fuels anticipates completing the processing of its remaining monazite stock early in the third quarter, leading to a total output of 25-35 metric tons of separated NdPr and 10-20 metric tons of a heavy samarium (Sm+) mixed rare earth carbonate.

Looking ahead, the company is not only focused on NdPr but is also fine-tuning its plans to produce dysprosium (Dy) and terbium (Tb), two other critical rare earth elements, as part of the mill's Phase 2 expansion. This phase aims to increase the facility’s capacity to process 40,000-60,000 metric tons per year of monazite, significantly boosting output to 4,000-6,000 metric tons per year of NdPr, along with 150-225 metric tons per year of Dy and 50-75 metric tons per year of Tb.

The ongoing expansion is supported by strategic acquisitions and partnerships aimed at securing a stable supply of monazite, a key feedstock for rare earth oxide production. Energy Fuels has acquired Perth-based Base Resources, which is developing the Toliara project in Madagascar, and owns the Bahia project in Brazil, both of which are expected to supply significant volumes of monazite to White Mesa. Additionally, the company is developing the Donald project in Australia through a joint venture with Astron.

These efforts are part of Energy Fuels’ broader strategy to meet the growing demand for rare earth elements, which are essential for high-tech applications, including electric vehicles, renewable energy, and advanced defense systems.

Energy Fuels heavy rare earth oxides enter U.S. pilot production

Energy Fuels

Pilot ramp and technology path

Energy Fuels heavy rare earth oxides entered pilot production at the White Mesa Mill. The company now produces dysprosium oxide at a minimum 99.5% purity. Energy Fuels heavy rare earth oxides make it the only domestic producer from mined ores. The pilot will complete its first kilogram of dysprosium this quarter. Production will continue through September, generating residues for the terbium circuit. Terbium oxide output of one kilogram is targeted by late November. Energy Fuels plans samarium oxide runs starting January. As a result, Energy Fuels heavy rare earth oxides will span Dy, Tb, and Sm.

Feedstock strategy and Phase 1 commercialization

Commercial output could start in late 2026 at the Phase 1 separation circuit. Feed would include existing concentrates and Australia’s Donald project from 2027. Donald contains monazite and xenotime, strengthening heavy rare earth recoveries. High xenotime content enhances dysprosium and terbium yields. At 7,100 t/yr concentrate, Donald could reshape U.S. supply. Projected yields are 129 t Sm, 16 t Tb, and 92 t Dy. Those volumes cover 250% of Sm demand and 23% of Tb demand. They would also meet 34% of domestic Dy demand for decades. Energy Fuels also advances Toliara in Madagascar, pending approvals. The plan targets first production by 2028. Brazil’s Bahia project aims for a 2029 start-up after permitting. Together, these assets diversify light and heavy REE supply.

The Metalnomist Commentary

This pilot establishes a credible U.S. pathway for high-value HREEs used in magnets and defense. Execution now hinges on steady feedstock, process reliability, and long-term offtakes to de-risk commercial scale-up. If tariffs and permitting stay manageable, White Mesa could anchor a durable domestic HREE chain.