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 historical 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.

Rainbow has determined it is possible to achieve strong recoveries through an acid leaching process, which will allow for between 65% and 70% of rare earths contained in the Phalaborwa gypsum stacks to be recovered in solution.

The company plans to use hydraulic reclamation of gypsum stacks, eliminating costs traditionally associated with primary mining, crushing and grinding of ore.

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 has reiterated how well positioned its near-term Phalaborwa project is, considering current market conditions.

The rare earths basket price has risen by 80% in the first half of its 2022 financial year, significantly exceeding forecast price ranges. Neodymium prices have risen by 94%, compared with the prices during the same months last year.

Reporting on its performance for the six months ended December 31, 2021, Rainbow says the low-carbon technologies required to facilitate the green revolution have a high minerals demand, particularly in the offshore wind and electric vehicle (EV) production space.

Rainbow is investigating how it can further reduce capital and operating costs, with trade-off studies under way.

If need be, the company says it can produce the first mixed rare-earth carbonate at a lower upfront capital cost.

Testwork has also confirmed that there are low levels of radioactive elements in the gypsum stacks and that existing water from the stacks can be used as process water in a closed circuit.

“With our near-term development opportunity at Phalaborwa, in South Africa, we believe Rainbow is well positioned to contribute to this global effort by providing a responsible, Western source of rare-earth oxides, critical minerals for the permanent magnets used in offshore wind generation, EVs, mobile phones, electric scooters, bicycles and other green technologies,” CEO George Bennett has said.

Key Contracts, Suppliers and Consultants
ANSTO Minerals (flowsheet process optimisation); and ANSTO Minerals K-Tech (testwork programme).

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.