A Galician mine cleared its final regional hurdle on Wednesday, paving the way for the EU's only domestic primary source of tantalum and niobium.

The Xunta de Galicia authorised the transfer of the Section C mining concession at the Penouta mine, in Viana do Bolo, Ourense, to ASX-listed Energy Transition Minerals (ETM) on 1 July 2026.

The transfer completes the rescue of the project from the insolvency of Strategic Minerals Spain, which collapsed and halted production in October 2024.

The overwhelming majority of niobium comes from Brazil, while most tantalum is mined in the Democratic Republic of Congo and Rwanda – regions where traceability remains difficult to guarantee. China dominates global processing of these critical minerals, which are foundational to semiconductors, aerospace alloys, and energy-transition technologies. Tantalum prices have surged to multi-decade highs following recent supply disruptions in central Africa.

Penouta would offer a locally regulated, transparent alternative on EU soil, directly aligning with the bloc's Critical Raw Materials Act. The Act targets cutting reliance on any single foreign supplier to below 65% of annual demand, with a 2030 deadline to rebuild domestic extraction and processing.

ETM acquired the mine for €5.2 million, backed by a A$10 million strategic placement from a key shareholder. The site retains an open-pit operation and a processing plant tailored to its ore, representing a historic €28 million investment from the previous operator.

ETM expects to restart mining within 18 to 24 months from June 2026 – pointing to a return to production around late 2027 or early 2028.

The transfer remains subject to an outstanding appeal before the High Court of Justice of Galicia. ETM’s position is protected either way, the company explained. A favourable ruling would give full effect to the transfer, while an adverse decision would allow the company to apply for a fresh concession instead.

The company has already inked a memorandum of understanding with Traxys for concentrate offtake, signalling robust market demand for a secure European supply.

"Europe has spent years talking about reducing its dependence on a handful of distant suppliers for the metals its industries cannot do without," said ETM managing director Daniel Mamadou. "Penouta is one of the few places on the continent where that ambition can actually be met - and met soon. This approval clears our path to bringing it responsibly back to life, with real benefits for the Galician community and for Europe's wider supply-chain resilience."