Name of the Project
Phalaborwa Rare Earths Project.

Location
Limpopo, South Africa.

Project Owner/s
London-listed Rainbow Rare Earths (85%).

Rainbow Rare Earths signed an agreement with phosphate mining company Bosveld Phosphates in June 2023 to ensure it obtains 100% ownership of the Phalaborwa project. 

Upon completion of a definitive feasibility study (DFS), the unincorporated joint venture (JV) will be transferred into an incorporated JV company and, at Rainbow’s election, Bosveld will transfer all assets required for the project into that company. 

Project Description
An interim economic study released in December 2024 proposed a project life of 16 years – two years longer than the one envisaged in the October 2022 preliminary economic assessment (PEA) – processing an average of 2.2-million tonnes of phosphogypsum a year.

The overall recovery rate of magnet rare-earth elements remains the same as that of the PEA, at 65%, based on the pilot campaign undertaken from 2023 to 2024, with about 1 900 t/y magnet rare earth oxide (REO) production.

The interim economic study represents a much higher level of confidence in the processing flowsheet prior to separation, and capital and operating cost estimates, than those of the PEA.

In addition to confirming the robust economics of Phalaborwa, the interim economic study has highlighted several areas for further operating and capital cost optimisation, which will be done in parallel with the ongoing rare earth separation testwork.

Potential Job Creation
Not disclosed in the interim study.

Net Present Value/Internal Rate of Return
When calculated on the same basis as the October 2022 PEA, the interim economic study delivers an after-tax net present value (NPV), at a 10% discount rate, of $611-million, in line with the comparable PEA NPV of $627-million.

Capital Expenditure
The interim economic study provides an updated, upfront capital cost of $326.1-million, which is lower than the PEA capital cost of $295.5-million, adjusted for inflation.

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

Latest Developments
Rainbow Rare Earths has reported major progress, with continuous ion-exchange testwork having upgraded mixed rare earth carbonate to more than 55% total rare-earth oxides (TREOs), surpassing the industry benchmark of 42%. 

The purified product, achieving consistent TREO purity of more than 93%, provides a high-grade feed for separation into REOs such as neodymium, praseodymium, dysprosium and terbium, which are critical for permanent magnets. 

The definitive feasibility study (DFS) for the primary leach flowsheet, which represents 85% to 90% of project capital expenditure, is advancing, incorporating recent trade-off studies that are expected to deliver further savings in capital and operating costs. 

The process has also reduced pregnant leach solution volumes from 340 m³/h to 7 to 10 m³/h, lowering costs and simplifying separation. 

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