20th Mar 2023 08:53
(Alliance News) - Rainbow Rare Earths Ltd on Monday said that development work is progressing according to plan at its pilot plant in South Africa, as it looks to start operations later this year.
The Guernsey-based mining company focused on South Africa and Burundi said that key workstreams have begun to advance Phalaborwa, its rare earths project, to the definitive feasibility study stage.
It told investors that both the pilot plant design and setup are progressing in line with expectations, with commissioning to start in the second quarter. Work has already begun with Mintek, South Africa's mineral research organisation, to design and fabricate the front end of the plant.
Rainbow Rare Earths confirmed the size of the updated mineral resource estimate at 30.4 million tonnes, comprising 0.4% total rare earth oxides.
"Workstreams for Phalaborwa's DFS have commenced according to plan and the pilot plant is on track to commence operations this year, producing separated rare earth oxides, as part of the overall project timetable which envisages commercial production from 2026. This is a remarkable fast-track for any rare earths development project globally, considering we commenced work at Phalaborwa in 2021," said Chief Executive Officer George Bennett.
"Successful operation of the pilot plant will give further confidence to our plans to leverage our proprietary technology, with the aim of targeting opportunities to produce rare earths from historic phosphogypsum stacks, or as a by-product of phosphoric acid production, on a global scale. Today's resource upgrade is the result of infill drilling which has confirmed our expectations that the project's two phosphogypsum stacks are homogenous and consistent in grade."
Rainbow Rare Earths shares were trading 0.8% higher at 9.57 pence each in London on Monday morning.
By Holly Beveridge, Alliance News reporter
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