Rainbow Rare Earths Ltd (LSE:RBW, OTC:RBWRF) CEO George Bennett talked with Proactive about the company's updated JORC-compliant mineral resource estimate for the Phalaborwa project. The update extended the mine's life from 14 years to 16 years, with the resource increasing from 32 million tonnes to 35 million tonnes. Bennett emphasised the high confidence level of the resource, thanks to improvements in categorisation under JORC standards.
He explained that with a cut-off grade of 2.2%, the project will be able to process nearly all the resource, extracting maximum value. Furthermore, Bennett highlighted four critical rare earth elements—neodymium, praseodymium, dysprosium, and terbium—used in consumer electronics, electric vehicles, and wind turbines.
Bennett also underscored Rainbow Rare Earths' competitive advantage as a low-cost producer. According to him, even in a lower pricing environment, the company expects profitability due to its efficient cost structure. He mentioned that the project’s in-situ rare earth oxide value stands at $3.7 billion, with recovery rates of 66%.
Looking ahead, Bennett noted that the company plans to release a Definitive Feasibility Study (DFS) by early 2025, with a preliminary update expected in November 2024. These milestones will offer further insights into the project's profitability and value potential.