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Rainbow Rare Earths reports that key global
macroeconomic trends are expected to drive a strong and diversified demand for
neodymium and praseodymium (NdPr), which analysts suggest will lead to a
significant supply deficit over the medium term underpinning strong pricing.
To meet this deficit, Rainbow has signed a
codevelopment agreement with Bosveld Phosphates to develop the Phalaborwa rare
earth project in South Africa, recovering rare earths from gypsum stacks
resulting from historic phosphate hard rock mining.
Phalaborwa represents an “exciting
near-term growth opportunity” for Rainbow, the company states.
Initial assay results of the project
indicate an average in situ grade of 0.5% total rare earth oxides, of which
between 29% to 30% comprise high-value NdPr.
ANSTO Minerals is performing tests to
confirm the metallurgical variability within the gypsum stacks at Phalaborwa,
following which metallurgical test work will be carried out to produce an
enhanced process flow sheet for the preliminary economic assessment/scoping
study.
As a result of the “unique” nature of the
project, Rainbow says Phalaborwa is expected to be brought into production far
quicker and with a lower capital intensity than a traditional hard-rock rare
earths mining project.
GAKARA
Meanwhile, the miner also notes that
ongoing trial mining continues to demonstrate Gakara’s considerable potential,
with 300 t of concentrate having been produced in the first half of its 2021
financial year (ended December 31, 2020). This is up from the 114 t produced in
the six months to December 31, 2019.
Further, Rainbow has confirmed the
viability of a 10 000 t/y downstream processing plant for Gakara, reinforcing
the potential of the mine’s robust long-term economics.
CEO George Bennett says the company is now
“well positioned for success” as London’s only listed producing rare earths
company with both country and project diversification.
“The supply/demand fundamentals in the NdPr
market present Rainbow with an exciting opportunity and we are confident in our
capacity to become a globally significant producer of rare earth metals and to
take advantage of the favourable market outlook.”
In terms of health and safety, the miner
also notes that, for the last six months of the 2020 calendar year, it reported
no lost-time injuries, thereby bringing the total to 22 months of production
with zero lost-time injuries.
Rainbow also notes that it has enacted
effective measures to address Covid-19, measures which remain in place,
enabling operations to continue to run largely as normal.