Name of the Project
Phalaborwa Rare Earths Project.

Location
Limpopo, South Africa.

Project Owner/s
London-listed Rainbow Rare Earths (LSE: RBW)

Project Description
A preliminary economic assessment (PEA) has confirmed Phalaborwa's significant potential as a low capital intensity, high-margin, near-term rare earth development project. The project has a total Joint Ore Reserves Committee-compliant mineral resource estimate of 30.4-million tonnes at 0.44% total rare-earth oxides contained within two phosphogypsum stacks derived from historic phosphate hard rock mining.

Rainbow Rare Earths will extract the rare-earth elements using a proprietary continuous ion-exchange and continuous ion-chromatography plant process developed in conjunction with K-Technologies, based in the US.

The PEA, published in October 2022, is based on processing 2.2-million tonnes a year of phosphogypsum over a 14.2-year project life to deliver 26 208 t of separated magnet rare-earth oxides (REOs). The project will produce all four of the key rare-earth elements used to create permanent magnets (neodymium-praseodymium, dysprosium and terbium) and is believed to have the highest basket price of any rare earths project – $175.89/kg – outside of China, while the average processing cost is estimated at $33.86/kg.

Potential Job Creation
The project will create numerous employment opportunities during construction, and an estimated 300 direct job opportunities, excluding contractors, suppliers, vendors and consultants. Priority will be given to the people in the Ba-Phalaborwa area with the requisite skills and experience for these jobs. Rainbow will give preference to local contractors and where contractors are imported from other areas, Rainbow will encourage the employment of local labour.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 10% discount rate, of $627-million and an internal rate of return of 40%, with a payback of less than two years.

Capital Expenditure
$295.5-million.

Planned Start/End Date
Production is expected to start in 2026.

Latest Developments
Rainbow Rare Earths has announced that the front end of its pilot plant for the Phalaborwa project has started operations and is on track to produce the first high-value mixed rare-earth sulphate in the third quarter.

The pilot plant back end, to produce separated magnet REOs, are also well-advanced in terms of its construction, with commissioning scheduled to start in the third quarter.

Key Contracts, Suppliers and Consultants
ANSTO Minerals (plant processing testwork); K-Technologies Inc (REO separation technology and partner in developing plant processing flowsheet; managing back end of pilot plant at its facility in the US); Mintek (managing plant front end in South Africa); METC Engineering (production of the preliminary economic assessment and engineering work for the DFS).

Contact Details for Project Information
Tavistock Communications, on behalf of Rainbow Rare Earths, tel +44 20 7920 3150 or email rainbowrareearths@tavistock.co.uk.