Rainbow Rare Earths deal with Neo clears path for Phalaborwa study
The partnership advances processing plans as Rainbow moves the South African rare earths project towards financing.
Rainbow Rare Earths has secured a significant offtake agreement with Neo Performance Materials for its Phalaborwa rare earths project in South Africa, clearing a crucial technical hurdle. The Memorandum of Understanding grants Neo the right to 40% of Phalaborwa's annual production of separated neodymium-praseodymium oxide and 65% of its mixed segment heavy rare earth carbonate.
The pricing will be based on relevant rare earth indices under commercial terms, with Neo providing technology, design input, and technical support for Rainbow's final solvent extraction circuit. Rainbow CEO George Bennett expressed delight at the partnership, praising Neo's expertise in rare earth separation and magnet materials.
The project aims to recover rare earths from phosphogypsum waste, potentially reducing development requirements compared to conventional greenfield mines. The agreement is subject to binding long-form agreements, with commercial terms to be finalized as the company works towards feasibility, financing, and permitting milestones.
The Phalaborwa project, which now targets a first half 2027 definitive feasibility study (DFS), is estimated to cost $326 million.
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