Name of the Project
Phalaborwa rare earths project.

Location
Limpopo, South Africa.

Project Owner/s
London-listed Rainbow Rare Earths announced the signing of a binding agreement with Bosveld Phosphates for the co-development of the Phalaborwa rare earths project in November 2020.

On completion of a prefeasibility study (PFS), 70% of the project will be held by Rainbow and 30% by Bosveld, with a mechanism included to allow for Rainbow’s joint venture ownership to vary from 60% to 85%, depending on the results of the PFS.

Project Description
Rainbow Rare Earths and Bosveld Phosphates intend to jointly develop and process rare-earth elements (REEs) from the gypsum contained in two stacks at the project site.

Technical work undertaken to date has confirmed an inferred mineral resource estimate at Phalaborwa of 38.3-million tonnes at 0.43% total rare-earth oxides (REOs) contained within gypsum tailings stacked in unconsolidated dumps, derived from historic phosphate hard-rock mining.

High-value neodymium and praseodymium oxide represent 29.1% of the total contained REOs, with economic dysprosium and terbium oxide credits enhancing the overall value of the rare earth basket contained in the stacks.

Metallurgical testwork has confirmed that the phosphogypsum at Phalaborwa is amenable to direct leaching with acid to extract the contained rare earths.

The reprocessing of these gypsum stacks carries significant environmental benefits, as it will redeposit clean, benign gypsum, which then has the potential for further use in the building and fertiliser industries.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
Not stated.

Planned Start/End Date
Not stated.

Latest Developments
Rainbow Rare Earths reports that its 70% share in the Phalaborwa rare earths project, through an amendment to an agreement for co-development and joint venturing in the project with Bosveld Phosphates, has been confirmed.

The amended agreement, signed on January 18, confirms Rainbow’s shareholding in the JV at 70%, with the remaining 30% held by Bosveld.

The amendment serves to underscore Rainbow’s belief in the significant potential of the Phalaborwa rare earths project and removes any uncertainty surrounding the benefit derived by Rainbow by fixing its majority shareholding at 70%, Rainbow CEO George Bennett has noted.

“Testwork has indicated that the project has the capacity to be developed as a low-capital, low-operating cost asset with high yields, reaching the production  stage on an accelerated timeline,” Bennett has said.

This is owing to the unique nature of the project, with the rare earths contained in a cracked chemical form in the phosphogypsum, and requiring no significant costs associated with mining, crushing and grinding, or chemical cracking of the underlying rare-earth minerals. These tend to form the majority of the cost base for traditional hard-rock rare earth mining projects, he has pointed out.

Using the technology exclusively licensed to Rainbow for Southern Africa from K-Technologies, Rainbow plans to deliver separated REOs at the Phalaborwa site, facilitating the full value of the contained REOs to be realised for the benefit of shareholders.

Key Contracts, Suppliers and Consultants
ANSTO Minerals (flowsheet process optimisation).

Contact Details for Project Information
Flagstaff Strategic and Investor Communications on behalf of Rainbow Rare Earths, tel +44 207 129 1474 or email rainbowrareearths@flagstaffcomms.com.