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
Rainbow remains on track to start construction in 2027, with first production targeted for 2028.

Latest Developments
Rainbow Rare Earths has advanced the project by confirming solvent-extraction (SX) as the final separation method for producing high-purity REOs. 

The decision follows a detailed review of alternative separation technologies and enables the company to lock in the project’s definitive flowsheet ahead of construction. The SX circuit, designed with support from ANSTO, will use a streamlined arrangement of about 75 mixer-settlers to produce separated neodymium/praseodymium oxide, and a mixed medium- and heavy-rare-earth carbonate, known as SEG+. This mixed product will contain a suite of valuable rare earths, including samarium, europium, gadolinium and yttrium. 

The project’s economic outlook has strengthened considerably following a dramatic surge in the price of yttrium, which is now included in the SEG+ basket. Phalaborwa is expected to produce about 213 t/y of yttrium oxide as part of its mixed heavy-rare-earth output. 
In early 2025, high-purity yttrium oxide was trading at about $6/kg in Europe, but by late November prices had risen to between $220/kg and $320/kg.

As yttrium is recovered alongside other rare earths at no additional processing cost, this price escalation represents a direct improvement on the project’s revenue profile, and could add an estimated $30-million a year to projected earnings, based on conservative assumptions. This uplift complements earlier design refinements that doubled the estimated yearly value of the SEG+ product to about $160-million.

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.