11 January 2024
Rainbow Rare Earths Limited
("Rainbow" or "the Company")
LSE: RBW
Rare Earth Oxide separation work commences at the back-end pilot plant in
· Phalaborwa pilot plant programme generating positive results in both
· Rare earth oxide separation work is underway in
· Continuous run of the front-end pilot plant in
· Iterative Phalaborwa pilot plant operation continues to deliver ongoing optimisation of the process flowsheet
NEWS RELEASE
Rainbow Rare Earths is pleased to announce the progression of the Phalaborwa pilot plant process, with the rare earth oxide separation process now underway at the facilities of Rainbow's technical partner K-Technologies, Inc. ("K-Tech") in
This back-end plant process utilises continuous ion exchange ("CIX") and continuous ion chromatography ("CIC") to produce separated rare earth oxides. The innovative application of this established technology has been pioneered by K-Tech in the rare earth space and replaces traditional solvent extraction which uses toxic and flammable solvents and diluents and requires more than 100 separate stages. The process will produce all four of the critical rare earths used within permanent magnets, being neodymium and praseodymium (together "NdPr"), dysprosium ("Dy") and terbium ("Tb"). A video of Rainbow's CIX / CIC test runs underway at K-Tech's facilities can be viewed at https://www.rainbowrareearths.com/news-media/media/.
Bench scale testwork carried out by K-Tech is already showing positive rare earth oxide separation in line with expectations. The continuous run of the CIX / CIC pilot plant has also now commenced. The first separated oxides to be delivered will be the NdPr, expected within the coming weeks, while the Dy and Tb will follow thereafter due to their presence in smaller volumes within the rare earth basket.
The front-end pilot plant, which is situated at the
The front-end will start running on a continuous basis from the week commencing 15 January 2024. This integrated, whole-circuit campaign will produce increasing volumes of mixed rare earth carbonate to ship to K-Tech over the course of Q1 2024.
The pilot plant process is an iterative process that allows for continual optimisation in order to deliver the most efficient final flowsheet for commercial scale operations. As part of this process, Rainbow has worked with its partner K-Tech to establish the optimal mixed rare earth product for the back-end CIX / CIC system. Having first successfully produced a mixed rare earth sulphate, it was decided to further beneficiate the product, removing certain unwanted elements, with the optimal end product for separation agreed as a cerium-depleted mixed rare earth carbonate, providing a higher-grade feedstock to the back-end separation circuit.
The inclusion of this extra processing step into the front-end process does not add any significant capital or operating expenditure to the front-end flowsheet, but reduces the quantity of mixed rare earths to be processed in the CIX / CIC circuit by approximately 40%, with resultant capital and operating cost benefits.
In addition, the piloting process has delivered further optimisation results to date including:
· improvement in the impurity and rare earths leach temperature conditions from the 40⁰C set out in the Preliminary Economic Assessment to 30⁰C, delivering a significant ca. 50% saving in energy requirements with resultant expected capex and opex savings; and
· the successful regeneration of two key reagents in the leach solution.
The four rare earths that will be produced at Phalaborwa - NdPr, Dy and Tb - are all designated as critical minerals further to their important role in the transition to the green economy. As vital components of permanent magnets, these rare earth elements are used within electric vehicles and wind turbines, as well as many other advanced technologies including those required for strategic defence purposes, such as guided missiles, drones, electronic displays, sonar and jet fighter engines.
George Bennett, CEO of Rainbow, commented: "Whilst we have experienced some delays from the original timetable due firstly to the further beneficiation of the mixed rare earth sulphate to produce a cerium-depleted mixed rare earth carbonate as the optimal feedstock for the K-Tech CIX and CIC circuits, plus two key mechanical issues at K-Tech, which took longer to resolve than anticipated due to the Christmas period, this has in no way affected the integrity of the process flowsheet which is progressing as planned. During this time, we have continued with front-end plant optimisation work in order to deliver the most efficient final flowsheet for commercial operations, as well as ongoing shipments of mixed rare earth carbonate to K-Tech. We look forward to providing updates on the pilot plant milestones during Q1 2024."
Tom Baroody, President and CEO of K-Tech, commented: "We are delighted to have commenced operations, and separation of the Phalaborwa material is progressing as planned. The delivery of all four separated rare earth oxides, neodymium, praseodymium, dysprosium and terbium, on
For further information, please contact:
Rainbow Rare Earths Ltd |
Company |
George Bennett Pete Gardner |
+27 82 652 8526
|
|
IR |
Cathy Malins |
+44 7876 796 629 |
Berenberg |
Broker |
Matthew Armitt Jennifer Lee
|
+44 (0) 20 3207 7800 |
Tavistock Communications |
PR/IR |
Charles Vivian Tara Vivian-Neal |
+44 (0) 20 7920 3150 |
Notes to Editors:
About Rainbow:
Rainbow Rare Earths aims to be a forerunner in the establishment of an independent and ethical supply chain of the rare earth elements that are driving the green energy transition. It is doing this successfully via the identification and development of secondary rare earth deposits that can be brought into production quicker and at a lower cost than traditional hard rock mining projects, with a focus on the permanent magnet rare earth elements neodymium and praseodymium, dysprosium and terbium.
The Company is focused on the development of the Phalaborwa Rare Earths Project in
The Phalaborwa Preliminary Economic Assessment has confirmed strong base line economics for the project, which has a base case NPV10 of US$627 million[1], an average EBITDA operating margin of 75% and a payback period of < two years. Pilot plant operations commenced in 2023, with the project expected to reach commercial production in 2026, just five years after work began on the project by Rainbow.
More information is available at www.rainbowrareearths.com.
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