RAINBOW Rare Earths said on Thursday it aimed to publish a prefeasbility study of its Phalaborwa rare earths project in South Africa in the fourth quarter following a provisional agreement with the Canadian industrial materials firm Neo Performance Materials (Neo).
The agreement – a memorandum of understanding – is for Rainbow to supply refined rare earths neodymium and praseodymium (NdPr) along with unrefined heavy rare earths, known collectively as SEG+ which require complex chemical separation to be done at Neo’s facilities in Estonia.
In return for access to the processing facilities, Rainbow has undertaken to supply 40% of its NdPr oxide production and 65% of the annual mixed SEG+ heavy rare earth carbonate production. Finding a chemical solution for the SEG+, – minerals such as samarium, europium, and gadolinium – is an important precursor or the PFS.
A subsequent definitive feasibility study is then set for the first half of next year. Despite the DFS being late – it was originally planned for 2025 – Rainbow is sticking to first commercial production from Phalaborwa in 2028.
“We are delighted that Neo has agreed to partner with us – its deep understanding and experience in rare earth separation and magnet materials is invaluable,” said George Bennett, CEO of Rainbow.
The Phalaborwa project, situated in Northern Cape province, was last estimated to carry a capital cost $326m. Even in the likely event the project cost has inflated, Rainbow is likely to have options in attracting funding support.
Rare earths are critical to the permanent magnets used in electric vehicles, fighter jets, wind turbines and mobile phones. China dominates the global supply chain from mining through to magnet production, while a lack of funding has long hampered western rivals.
Since Donald Trump returned to the White House, the US government has announced $18.6bn in committed and uncommitted funding to the critical minerals sector, the vast majority directed at rare earths, according to BMO analysts.
The US International Development Finance Corporation (DFC) has guaranteed about $50m of its total $62.8m in African-based which also based in Malawi, Angola, and Madagascar, according to a report by Reuters in August.
