08:00 Tue 19 Sep 2017
Rainbow Rare Earths - Commencement of Ore Mining and Operations Update
Commencement of Ore Mining and Operations Update
Rainbow, the rare earth element mining company, is pleased to announce an update on its
Highlights
· Mining and plant construction timetable remains on track to deliver first rare earth concentrate for sale in Q4 2017
· Mining of ore has commenced at the Gasagwe site
· Plant construction progressing well
o Civils and earthworks well advanced, expected to be complete by end September
o Approximately half of plant containers already in
· Rare earth prices continue to strengthen - Rainbow basket price up 80% YTD
Commencement of Ore Mining
At the Gasagwe site, the Company has focused on the pre-stripping work since
Following completion of the construction of the run-of-mine ('ROM') bunkers at the Kabezi plant site, Rainbow has commenced extraction of ROM ore and will be stockpiling the feedstock in advance of plant commissioning within the next six to eight weeks.
Processing Plant
Rainbow continues to develop a new processing plant and remains on track to deliver first rare earth concentrate for sale in Q4 2017. The plant is ideally located at Kabezi, approximately 20km from the Company's mining areas and 10km due south of
Since the Company's last Operations Update on
Rainbow has already imported over half of the planned container shipments of plant and machinery, with the balance due to arrive during September and October.
Since reporting on
Sales and Marketing
In partnership with thyssenkrupp Raw Materials ('TK'), Rainbow expects to make first sales of rare earth concentrate in Q4 2017. Prices for rare earth elements have been increasing rapidly in recent months and this has translated to Rainbow's own basket price, which by
As discussed previously, Rainbow will receive a discounted sales price to the basket price, which is adjusted for the grade of the concentrate and to reflect the costs of processing the concentrate by customers. The discount remains subject to negotiations undertaken by TK with individual end customers.
Based on recent market feedback Rainbow and TK are confident that there is strong demand for all of Rainbow's planned near term production, which is to achieve a run rate of 5,000tpa of rare earth concentrate before the end of 2018.
**ENDS**
For further information, please contact:
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Tel: +44 (0) 20 7494 8206 |
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Susie Geliher |
Tel: +44 (0) 20 7236 1177 |
Notes to Editors:
Rainbow's focus is the
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