In an unaudited statement for the six months ending December 31, Rainbow Rare Earths CEO George Bennet underscores the promising potential of the Phalaborwa rare earths project in South Africa, positioning it as a game-changer in the rare earth elements (REEs) landscape. “Phalaborwa stands out as a unique venture within the rare earths domain. Its focus on reprocessing phosphogypsum stacks to extract rare earths sets it apart with a distinct cost profile, projecting it to be the most lucrative rare earth project in development today,” Bennet remarks.
Bennet further highlights the substantial backing received from the US government, with a $50-million funding commitment announced at COP28 through the Development Finance Corporation in support of the project, to be facilitated by TechMet, with whom Rainbow entered into an investment option agreement in November 2023. Commenting on the Uberaba phosphogypsum project in Brazil, in collaboration with Mosaic, Bennet expresses optimism, noting its significant scale and promising initial test results. He emphasizes its contribution to Rainbow’s strategic vision of establishing an independent and ethical supply chain for REEs vital to the green energy transition.
The successful production of approximately 35 kg of mixed rare earth carbonate at the front-end pilot plant in South Africa marks a significant milestone, with plans to utilize it as feed for the back-end pilot plant in Florida, USA, to yield separated rare earth oxides (REOs) expected by the second quarter of 2024. Rainbow underscores the environmental advantages offered by the Phalaborwa project, highlighting its role in addressing legacy issues and enabling site rehabilitation over time. Moreover, the utilization of continuous ion exchange and ion chromatography for REO separation is lauded for its cost efficiency and environmental benefits compared to traditional methods.
Recent bulk density calculations have boosted the Phalaborwa project’s tonnage by approximately 16% and extended its project life by over two years, with an update to the Joint Ore Reserves Committee-compliant resource expected in the second quarter. A letter of intent has been secured for an offtake agreement, projecting the sale of approximately 400,000 to 600,000 tons of Phalaborwa’s gypsum by-product annually into the South African domestic and neighboring markets, which are anticipating gypsum supply shortages, thus providing an additional revenue stream for Rainbow.
Additionally, Rainbow has forged a strategic supply agreement with Less Common Metals, the UK’s sole rare earth metal and alloy manufacturing facility, enhancing its market presence and supply chain reliability. Moreover, a memorandum of understanding has been established with The Mosaic Company regarding the Uberaba phosphogypsum project, further underlining Rainbow’s commitment to expanding its footprint and driving sustainable REE production globally.
