COP 26 Resolutions

RNS Number : 1177U
Rainbow Rare Earths Limited
01 December 2021
 

 

 

1st December 2021

 

Rainbow Rare Earths Limited

("Rainbow" or "the Company")

LSE: RBW

 

COP26 Resolutions - a bright future for Rainbow Rare Earths

 

The 2021 United Nations Climate Change Conference of Parties ('COP26') recently closed with the adoption - by consensus of nearly 200 countries - of the Glasgow Pact, which seeks to increase climate ambition and action by keeping the target of 1.5C alive, as well as finalising the outstanding elements of the Paris Agreement.

 

Importantly, the deal struck has codified new rules to reduce greenhouse gas emissions, including the gradual phasing down of fossil fuel consumption and the reduction of the global carbon market. Key to achieving this will be the advancement of the green revolution, which aims to massively curtail the use of Internal Combustion Engines ('ICE') and facilitate the greater utilisation of renewable energies and widespread adoption of green technology. These low-carbon greener technologies, however, have an intensive mineral demand.

 

The Importance of High-Strength Permanent Magnets

 

Central to this demand are Rare Earth Elements ('REE') - in particular, Neodymium and Praseodymium ('NdPr') and Dysprosium ('Dy'), which are used to make compact high-strength permanent magnets used in the motors of hybrid and Electric Vehicles ('EVs') and wind turbines powering the greener electrification era for the international community. These permanent magnets are also used in aerospace and the defence industries' satellite technology, and, across their varied sector uses, directly impact between US$5 trillion to US$10 trillion in global GDP. As a result, with the projected demand for REE expected to increase as much as ten times between 2030 and 2040, they have been designated as critical and strategic metals by the US Federal Department of the Interior, the Government of China, and the EU Parliament, as they promote a drive toward greater raw material security and sustainability.

 

To put this into a local UK context, in their letter to the Committee on Climate Change, leading UK scientists noted that, in order to replace all UK-based vehicles with EVs, at least 7,200 tonnes of neodymium and dysprosium would be needed, requiring a 70% increase in annual production.[1]

 

While rare earths are not rare from a geological perspective, they are not commonly found in economically viable concentrations, and, in addition to being generally low grade, often have high levels of radioactivity owing to the presence of thorium, which increases processing requirements and heightens safety concerns both operationally and environmentally. Furthermore, 85% of the world's REEs are currently produced by China, which has a significant impact on global supply and demand dynamics.

 

RRE - The Phalaborwa Project

 

With its exciting project-in-development in South Africa, Rainbow Rare Earths is well positioned to meet the anticipated demand and supply gap. In particular, the high grade and low-cost nature of the Phalaborwa Project, coupled with its anticipated utilisation of the latest, state-of-the-art processing technology, sets Rainbow well apart from its peers in its value and environmental proposition. Rainbow has the near-term opportunity to develop an independent, western Rare Earths supply chain and become a significant, responsible producer of NdPr, with regulatory oversight.

 

Rainbow Rare Earths CEO, George Bennett, commented:

"The resolution that follows the discussions of COP26 and the affirmation of the Paris Agreement six years in the making to adhere to net-zero carbon emissions, is a crucial factor in the dramatic increase of sustainable forms of energy production. Rainbow Rare Earths is in a pivotal position to provide the foundational materials required to advance this clean technology and the green revolution.

"The Phalaborwa Project can be brought into production quickly, with low capital and operating expenditure, in an environmentally responsible manner to deliver a high-grade oxide. In the processing of material from the existing gypsum stacks at Phalaborwa, we aim to deliver a clean rare earths project, removing environmental liability and redepositing benign gypsum on a new stack, built according to International Finance Corporation ("IFC") Performance Standards and Equator Principles.

"The codification of international net-zero carbon targets cements Rainbow's position as company working towards a green future, directly contributing to the alleviation of climate change through a responsible, sustainable, and independent supply chain for Rare Earth Elements."

 

**ENDS**

 

For further information, please contact:

 

Rainbow Rare Earths Ltd

Company

George Bennett

Pete Gardner

+27 82 652 8526

 

SP Angel Corporate Finance LLP

Broker

Ewan Leggat

Charlie Bouverat

+44 (0) 20 3470 0470

Flagstaff Strategic and Investor Communications

 

Tim Thompson

Fergus Mellon

+44 (0) 207 129 1474

rainbowrareearths@flagstaffcomms.com

 

Notes to Editors:

Rainbow's strategy is to become a globally significant producer of rare earth metals. Nd/Pr are vital components of the strongest permanent magnets used for the motors and turbines driving the green technology revolution. Analysts are predicting demand for magnet rare earth oxides will grow substantially over the coming years, driven by increasing adoption of green technology, pushing the overall market for Nd/Pr into deficit.

 

The Phalaborwa Rare Earths Project, located in South Africa, comprises an Inferred Mineral Resource Estimate of 38.3Mt at 0.43% total rare earths oxides ("TREO") contained within gypsum tailings stacked in unconsolidated dumps derived from historic phosphate hard rock mining.  High value Nd/Pr oxide represent 29.1% of the total contained rare earth oxides, with economic Dysprosium and Terbium oxide credits enhancing the overall value of the rare earth basket contained in the stacks.  The rare earths are contained in chemical form in the gypsum dumps, which is expected to deliver a higher-value rare earth carbonate, with lower operating costs than a typical rare earth mineral project.

 

The Company's Gakara Project in Burundi has produced one of the highest-grade concentrates in the world (typically 54% TREO) through trial mining operations.  The Gakara basket is weighted heavily towards Nd/Pr, which account for over approximately 19.5% of the contained TREO and 85% of the value of the concentrate.

 

 

 
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