Rainbow Rare Earths approves $279m Brazil project

RAINBOW Rare Earths has approved a $279m rare earths project in Brazil, partnering with US fertiliser giant Mosaic to extract critical minerals from phosphogypsum waste at a site in Minas Gerais state.An economic assessment of the Uberaba project showed a post-tax net present value of $916m at a 10% discount rate, an internal rate of return of 45% and a payback period of just 1.7 years, based on current rare earth prices.“Uberaba represents a major opportunity to replicate Phalaborwa as an additional high-margin and near-term REE development project, situated in the lowest-cost quartile for the industry,” CEO George Bennett said.The project will process 2.7 million tons of phosphogypsum annually over an initial 30-year life, producing separated neodymium-praseodymium oxide and a samarium-europium-gadolinium-rich product, each at above 99.5% purity. Steady-state revenue is forecast at $319m per year, with EBITDA of $217m.Rainbow and Mosaic, listed on the New York Stock Exchange, have signed a joint project development agreement to advance a pre-feasibility study. Should a definitive feasibility study follow, the companies intend to form a joint venture with Mosaic holding 51% and Rainbow 49%.Rare earths are critical to permanent magnets used in electric vehicles and wind turbines. Western governments have sought to reduce dependence on China, which dominates global supply. Brazil has been identified by the US as a strategic partner in building supply chain independence for the minerals.The post Rainbow Rare Earths approves $279m Brazil project appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com