RCS - Rainbow Rare Earths - US Congressional Delegation hosted at Phalaborwa

Rainbow Rare EarthsAnnouncement

18/01/2024 07:30

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RNS Number : 1381A  Rainbow Rare Earths Limited  18 January 2024

 

 

18 January 2024

Rainbow Rare Earths Limited

("Rainbow" or "the Company")

LSE: RBW

 

U.S. Congressional Staff Delegation hosted at Phalaborwa

·    Site visit for U.S. Congressional staff delegation further to the
recent US$50 million investment commitment directly into the Phalaborwa
project from the U.S. International Development Finance Corporation ("DFC")
via TechMet Limited ("TechMet")

·    Rainbow's Phalaborwa project identified as a strategic and near-term
source of critical rare earths

NEWS RELEASE

Rainbow Rare Earths recently welcomed a U.S. Congressional staff delegation to
the Phalaborwa rare earths development project in South Africa for a site
visit.

The visit follows the recent announcement by the DFC that it would be
committing funding of US$50 million to TechMet for direct investment into
Phalaborwa. This announcement was made on 3 December 2023 at COP28, the United
Nation's Climate Change Conference, demonstrating the global effort to
responsibly scale production of the metals essential for clean energy
technologies. The four rare earths that will be produced at Phalaborwa -
neodymium, praseodymium, dysprosium and terbium - are all designated as
critical minerals further to their important role in the transition to the
green economy.

George Bennett, CEO of Rainbow, commented: "We were delighted to host a
bipartisan delegation of U.S. Congressional staffers to site over the
Christmas holiday period, which further confirms the interest Phalaborwa is
receiving from the highest levels in the U.S. Government. Phalaborwa is
rightly gaining traction as an important and strategic source of all four of
the critical rare earths required for the green energy transition, as well as
other next generation technologies, including those essential to defence and
national security."

The delegation welcomed at site comprised Joe Foltz, Staff Director, U.S.
House Foreign Affairs Committee, Subcommittee on Africa, Jimmy Walsh, a Senior
Professional Staff Member, Brendan Ramsay, Staff Director, U.S. House Foreign
Affairs Committee Minority, Subcommittee on Global Health, Global Human
Rights, and International Organizations, and David Freeman, First Secretary,
Environment, Science, Technology, Health, and Minerals at the U.S. Embassy
Pretoria.

The delegation at Phalaborwa. From left to right: David Freeman, Jimmy Walsh,
George Bennett, Joe Foltz, Brendan Ramsay.

 

For further information, please contact:

 

 Rainbow Rare Earths Ltd   Company  George Bennett         +27 82 652 8526

                                    Pete Gardner
                           IR       Cathy Malins           +44 7876 796 629

                                                           cathym@rainbowrareearths.com (mailto:cathym@rainbowrareearths.com)
 Berenberg                 Broker   Matthew Armitt         +44 (0) 20 3207 7800

                                    Jennifer Lee

 Stifel                    Broker   Ashton Clanfield       +44 20 7710 7600

                                    Varun Talwar

 Tavistock Communications  PR/IR    Charles Vivian         +44 (0) 20 7920 3150

                                    Tara Vivian-Neal       rainbowrareearths@tavistock.co.uk (mailto:rainbowrareearths@tavistock.co.uk)

 

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 South Africa and the earlier stage Uberaba Project in Brazil. Both
projects entail the recovery of rare earths from phosphogypsum stacks that
occur as the by-product of phosphoric acid production, with the original
source rock for both deposits being a hardrock carbonatite. Rainbow intends to
use a proprietary separation technique developed by and in conjunction with
its partner K-Technologies, Inc., which simplifies the process of producing
separated rare earth oxides (versus traditional solvent extraction), leading
to cost and environmental benefits.

The Phalaborwa Preliminary Economic Assessment has confirmed strong base line
economics for the project, which has a base case NPV(10) 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
(http://www.rainbowrareearths.com/) .

 

 1  Net present value using a 10% forward discount rate

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