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.

In November 2025, Rainbow Rare Earths advanced the project by confirming solvent extraction (SX) as the final separation method for producing high-purity REOs. 

The decision followed 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 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 now expected to produce about 213 t/y of yttrium oxide as part of its mixed heavy rare-earth output. 

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 started operations at its Johannesburg pilot plant, marking the final stage of process testwork for its Phalaborwa project.
The pilot programme is intended to validate its optimised process flowsheet and generate the technical data needed to support the definitive feasibility study (DFS), as well as third-party validation for project financing. The pilot plant will operate the full leach circuit, producing pregnant leach solution for a continuous ion-exchange (CIX) and impurity removal circuit developed using Rainbow’s proprietary technology.

Material produced during the pilot campaign will be used for off-site SX testwork to confirm separation pathways for high-purity neodymium/praseodymium (NdPr) oxide and other medium and heavy rare earths, including samarium, europium, gadolinium, terbium, dysprosium, holmium, erbium, thulium, ytterbium, lutetium and yttrium (SEG+). Rainbow expects pilot operations to continue through the first half of the year.

CEO George Bennett said the piloting work reflects an updated flowsheet developed through a series of optimisations over the past 18 months, which he has said further supports the project’s position on the lower end of the industry cost curve. The project is targeting the production of more than 99.5% separated NdPr oxide and SEG+ products, Bennett has said that the pilot results are important to finalising the DFS this year.

The pilot plant is operating at Rainbow’s in-house laboratory at Mintek, South Africa’s national mineral research organisation. It follows earlier pilot work completed in mid-2024, which contributed to further flowsheet optimisation, including the addition of a CIX circuit for impurity rejection, impurity precipitation steps and a simplified SX process.

Rainbow has reported that leach optimisation work has reduced the number of leach stages from three to two, cut residence time from 32 hours to eight, halved filter requirements and reduced heating needs – changes expected to lower capital and operating costs. The pilot campaign is also intended to finalise product specifications for NdPr oxide and SEG+ products, supporting offtake discussions.

The company has further noted that Phalaborwa’s ability to produce a broad range of strategic rare earths has attracted backing from the US International Development Finance Corporation as part of efforts to strengthen supply chain resilience. 

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.