Rainbow Rare Earth Company, which focuses on Africa, has signed an agreement with Bosveld Phosphate Company to jointly develop the Phalaborwa rare earth project in South Africa.
According to the latest statistics from the United States Geological Survey (USGS), in 2019, Tanzania has 890,000 tons of rare earth reserves, ranking 9th in the world; South Africa has 790,000 tons of rare earth reserves, ranking 11th in the world. In 2019, the output of rare earth mines in Madagascar in Africa was 2,000 tons and that in Burundi was 600 tons.
Africa's rare earth projects are dominated by light rare earths, with only one heavy rare earth; the grade is high, the average grade of the Gakara mine in Burundi is 54.9%, and the average grade of the SKK mine in South Africa is 14.4%; there are few large mines with a resource reserve of 100,000 There are only three projects over tons; except for the Gakara project in Burundi, which is in production, the rest are all projects to be developed.
Rare earth projects in Africa are mainly developed by Western listed mining companies such as the United Kingdom, Australia and Canada.
On December 1, 2011, Korea Mineral Resources acquired a 10% stake in the South African Zandkopsdrift project, which is located in the Northern Cape Province of South Africa and has a resource reserve of 950,000 tons.
Since 2019, with the escalation of the Sino-US trade war, major rare earth consumers such as the United States and Japan have also begun to pay attention to the rare earth resources in Africa: The US Department of Defense has negotiated with two rare earth companies developed in Malawi and Burundi, hoping to help Provide rare earths; the US Overseas Private Investment Corporation (OPIC) with government background intends to invest in the Nguala project in Tanzania; Japan, as the largest heavy rare earth consumer outside China, has decided to participate in the development of the Lofdal heavy rare earth mine in Namibia. Chinese companies mainly invest in copper, cobalt, iron, chromium and other metal mines in Africa. No company has invested in rare earth mines.
The two companies stated that the project contains about 35 million tons of gypsum, which was produced by historical hard rock phosphate mining, which contains rare earth elements (REEs). The average in-situ grade of rare earth oxides (TREOs) is estimated to be 0.6% .
As part of the agreement, Rainbow will pay Bosveld US$750,000 in cash and divide the equity into three equal shares within 12 months.
Once the pre-feasibility study is completed, Rainbow will hold 70% of the project shares, and Bosveld will hold the remaining 30%.
The two companies stated that the partners will develop and process rare earth elements from two piles of gypsum on the project site.
Rainbow CEO George Benner said in a statement, "This joint venture makes Rainbow the only rare earth producer with diversified countries and projects."
The Phalaborwa project was fully approved, and the initial report showed low levels of radioactivity, similar to Rainbow’s Gakara project in Burundi.
In the past year, Rainbow Rare Earths has also conducted exploration in Zimbabwe, especially near the Kapfrugwa deposit (also known as Gungwa), which is considered by the US Geological Survey to contain cerium and lanthanum.
Rare earths are composed of 17 minerals and are used in everything from high-tech consumer electronics to military equipment.
The strategic importance of rare earths has increased due to concerns that China, the largest producer of rare earths, will restrict supplies to the United States as a retaliatory measure against tariffs imposed by Washington earlier this year.
Although called rare earths, rare earths are not rare. According to the United States Geological Survey (USGS), rare earths are as common as copper. However, due to the rapid oxidation of rare earth minerals, extraction of them is difficult and serious.
China currently accounts for 70% of the world’s rare earth production, but due to the government’s crackdown on illegal mining and pollution, China has recently reduced its domestic rare earth production.
In the past year, the Trump administration has stepped up its efforts to ensure the supply of key minerals from outside China.
The White House has signed agreements with Canada, Australia and other countries to ensure the supply of minerals needed for electric vehicles, green technologies and military applications.
Last year, the White House ordered the U.S. Department of Defense to increase the production of rare earth magnets used in consumer electronics, military hardware, and medical research because of concerns that China may restrict exports of rare earth products as trade tensions between the two countries intensify.
Last month, Trump signed an executive order declaring the mining industry into a national emergency. This is mainly to curb China's dependence on rare earth imports and end China's control of the market.
The United States is not the only country seeking to reduce its dependence on foreign producers. In September this year, the European Union (European Union) increased its efforts to reduce its dependence on imported raw materials, including rare earths, and for the first time reduced its dependence on lithium.
