According to the company, this formal go-ahead confirms that its planned investment meets all regulatory and national security requirements, whilst endorsing its financial capacity and suitability to operate strategic assets in Spain.
The decision also builds on a recently executed land access agreement with the owners of the Dehesa da Chanca Community of Woods.
Energy Transition Minerals (ASX:ETM) noted completion of the acquisition is now contingent only on the transfer of the mining licences to its Spanish subsidiary.
This process is expected to be wrapped up this quarter.
“Securing FDI approval, alongside the agreement we have finalised with the Dehesa da Chanca community, represents a major step forward in establishing our long-term presence in Spain,’ explained Energy Transition Minerals managing director Daniel Mamadou.
“We are encouraged by the support shown by the Spanish government for foreign investment into the country to facilitate the development of strategic sources of critical minerals for Europe’s energy transition.”
Penouta is an established mine currently on care and maintenance.
It already contains an open pit, processing plant and tailings facility, alongside a non-JORC resource totalling 76.3Mt at 142ppm Ta2O5 equivalent.
All up, nearly $50 million has been invested in the project historically.
Management believes the asset could support the EU’s energy transition and push towards technological independence.
Tantalum is classified as a critical raw mineral in the EU due to its use in high-performance electronics, aerospace and defence sector technologies.
And its price has climbed to two-decade highs this year after two mine disasters at the major Rubaya hub in the DRC.
Panouta is considered one of few potential sources of the metal in Europe.
“The Penouta mine is a highly strategic critical minerals asset and we are looking forward to returning it to operations as quickly as possible, for the benefit of all stakeholders,” Mamadou said.
“As part of our FDI approval, we are committed to ensuring that output from the Penouta mine remains available for the development of associated industries within the European Union and we are actively engaging potential local offtake partners in this regard.”
Upon completion of the acquisition, the company plans to launch a detailed operational review to establish the optimal pathway to restart the mine.
This process will focus on environmental stewardship and local economic participation.
Separately, Energy Transition Minerals is actively engaging with Greenland authorities regarding its exploration licence covering the Kvanefjeld rare earths project.
Here, the company received a draft decision recommending that the licence renewal be declined.
Authorities reportedly argued that continued exploration serves little purpose, given that a mining licence cannot be granted under Greenland’s current legal framework.
According to Energy Transition Metals, this position stems from the country’s 2021 Uranium Act which bans uranium mining.
Whilst Kvanefjeld is primarily a rare earths deposit, it also contains uranium and zinc.
Management believes that application of the Uranium Act remains subject to the group’s ongoing legal proceedings, which are yet to be resolved.
It added that the draft decision appears inconsistent with previous government treatment of Kvanefjeld and licence renewals.
“The rationale outlined in the draft decision appears to be driven by a policy position that is itself under challenge and which raises serious questions as to its validity and applicability,” Mamadou said.
“In doing so, it brings one of the central issues in dispute into sharper focus and underscores the importance of the company’s ongoing legal proceedings in determining the outcome.”
Energy Transition Minerals said that it remains confident in the strength of its legal position. It is also assessing its options ahead of a final decision on the licence renewal.
