Study confirms ‘exceptional economics’ of Phalaborwa rare earth project
Published by Will Owen,
Editor
Global Mining Review,
Rainbow has announced the key outcomes of an updated economic analysis carried out in 2H24. The aim of the interim study was to update the economics of the project further to changes to the primary flowsheet to recover REE from the phosphogypsum stacks at Phalaborwa, as well as updating to current market pricing for all key areas of capital and operating costs.
The interim study, carried out in conjunction with independent consultants METC Engineering in South Africa, is at a much higher level of confidence than the original PEA. The large scale pilot test work conducted on the primary flowsheet has demonstrated robust recovery of REE from the Phalaborwa phosphogypsum to deliver a high-grade intermediate product. The improved definition of the primary flowsheet has allowed the interim study economics to be prepared to a much higher level of economic accuracy than the PEA, with updated market prices from multiple suppliers used for the majority of the finalised major mechanical equipment, key reagents, and other supplies.
In addition to confirming the robust economics of Phalaborwa, the interim study has highlighted a number of areas for further operating and capital cost optimisation, which will be done in parallel with the ongoing rare earth separation test work.
George Bennett, CEO of Rainbow, comments:
“The findings of the interim study confirm the exceptional economics of Phalaborwa first published in the PEA, after two years of significant inflationary pressure. The capital and operating cost estimates, now at a much higher level of economic confidence than at the PEA stage, confirm that Phalaborwa remains the highest margin rare earth project in development today outside of China. This is testament to the incredible contribution of the technical team at Rainbow over the past two years.
“This update reaffirms that Phalaborwa is extremely well positioned to contribute to the establishment of an independent and resilient supply chain for the REE critical to decarbonisation, defence, and emerging technologies.
“Going into the New Year, we now look forward to focusing on opportunities to drive further optimisation of our capital and operating costs, and to completing the separation test work.”
Read the article online at: https://www.globalminingreview.com/mining/30122024/study-confirms-exceptional-economics-of-phalaborwa-rare-earth-project/
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