Energy Fuels’ US$1.8B Madagascar mineral sands: economics and mine plan notes for engineers
Reviewed by Tom Sullivan

First reported on MINING.com
30 Second Briefing
Energy Fuels’ updated feasibility study for the 100%-owned Vara Mada heavy mineral sands project in southwest Madagascar assigns an after-tax NPV (10% discount) of US$1.8 billion and a 24.9% IRR, based on a 38-year mine life producing about 959,000 tonnes of ilmenite, 66,000 tonnes of zircon, 24,000 tonnes of monazite and 8,000 tonnes of rutile. Monazite concentrate will be shipped to the White Mesa mill in Utah, which currently processes up to 10,000 tonnes per year into 1,000 tonnes of NdPr oxide, with planned expansion to produce 48 tonnes of dysprosium and 14 tonnes of terbium oxides annually. Pre-FID capital is estimated at US$121 million with over US$900 million post-FID in two stages, contingent on finalising fiscal terms and adding monazite to the existing mining permit with the Madagascar government.
Technical Brief
- Updated feasibility study increases after-tax NPV by 80% compared with Base Resources’ earlier work.
- Energy Fuels acquired the project in 2024 via takeover of Base Resources, inheriting prior studies.
- White Mesa is currently the only operating uranium mill in the US, now configured for monazite processing.
Our Take
Within our 519 Mining stories, only a handful touch on heavy mineral sands and monazite, so Energy Fuels’ Madagascar focus stands out as one of the few integrated rare earths–uranium plays rather than a pure titanium feedstock project.
The combination of a 38-year mine life and the ability to meet an estimated 30% of US light REE and 85% of US heavy REE demand positions Vara Mada and the Ranobe deposit as a strategic hedge for US supply chains that currently lean heavily on Chinese separation capacity.
Pre-FID capital of $121 million versus more than $900 million post-FID suggests a relatively low-cost entry to de-risk the Vara Mada project, which is likely attractive for a $4.5 billion company like Energy Fuels looking to stage exposure to Madagascar permitting and infrastructure risk.
Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.
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