Shares in Rainbow Rare Earths Ltd (LSE:RBW, OTC:RBWRF) climbed 7.3% to 19p after the company updated the mineral resource estimate at its Phalaborwa project in South Africa to include yttrium, a heavy rare earth element (REE) currently under Chinese export controls.
The revision confirms Phalaborwa as a potential near-term source of both medium and heavy REE, including dysprosium, terbium, samarium, europium, gadolinium and yttrium, as well as critical light REE such as neodymium and praseodymium.
Chief executive George Bennett said demand for restricted elements like yttrium and gadolinium had increased since the introduction of Chinese export limits, highlighting Phalaborwa’s importance as a diversified supply source.
Rainbow plans to update its Definitive Feasibility Study to reflect the added value of these elements.
The project is expected to produce 1,817 tonnes of neodymium and praseodymium oxide annually, plus 1,159 tonnes of a SEG+ mixed rare earth carbonate product.