Rainbow Rare Earths Ltd (LSE:RBW, OTC:RBWRF, FRA:RR1) CEO George Bennett talked with Proactive about the company’s recent £11.1 million fundraising and the strategic significance of bringing Traxys on board as a partner linked to the US government’s Project Vault initiative.
Bennett explained how this development positions Rainbow Rare Earths Ltd as “a major player in the rare earths market” outside China, highlighting the company’s focus on extracting rare earth elements from phosphogypsum waste residues rather than traditional mining. This approach underpins two key assets: the Phalaborwa Project in South Africa and the Uberaba Project in Brazil.
He outlined that the newly secured funding provides a strong financial runway, enabling Rainbow Rare Earths Ltd to complete a definitive feasibility study at Phalaborwa by the end of 2026, alongside a pre-feasibility study at Uberaba in partnership with Mosaic. These milestones are expected to be critical value drivers for shareholders.
Bennett also emphasised the company’s cost advantage, noting that removing mining and processing steps could make Rainbow one of the lowest-cost producers of separated rare earth oxides. He added that both projects are targeting relatively near-term production, with Phalaborwa expected online in 2029 and Uberaba in 2030.
The interview also touches on the strategic opportunity presented by US efforts to build critical mineral stockpiles, positioning Rainbow Rare Earths Ltd within a rapidly evolving global supply chain landscape.
Proactive: George, very good to speak with you. You've just raised £11.1 million, you've got Traxys on board, a direct partner to the US government's Project Vault. What does that tell you about Rainbow's position in the rare earths market?
George Bennett: Thank you for that Stephen, and morning to your viewers. I think it now establishes Rainbow as a major player in the rare earths market, and as a high-quality strategic player outside of China. As your audience may know, we are developing two projects, one in South Africa and one in Brazil, to extract rare earths from phosphogypsum waste residue. Both of these projects are very near term in terms of production, and that establishes Rainbow as a serious player. Having somebody like Traxys on board, which is a partner to Project Vault — a $12 billion strategic fund set up by the US government — is very significant.
Proactive: George, this money gives you a strong financial runway and will also help fund those two major study milestones. What are the key things investors should be watching out for?
George Bennett: As we said in our announcement, it will see us through the completion of our definitive feasibility study at the Phalaborwa Project, which should be complete by the end of 2026. It also allows us to complete the pre-feasibility study we are embarking on with our partner Mosaic for the Uberaba Project in Brazil. It will take us beyond the second quarter of 2027 in terms of funding requirements, and we’ll be able to deliver two key value milestones for shareholders.
Proactive: You're aiming to be one of the lowest cost, highest margin rare earth producers. What makes Phalaborwa and Uberaba the right assets to achieve that?
George Bennett: As I’ve spoken about many times, we are extracting rare earths from phosphogypsum waste residue. That means you don’t have any mining costs, crushing, milling or concentration costs, because we are dealing with chemical stockpiles. Around 60% of the typical flow sheet for a hard rock or ionic clay rare earths project is removed. That makes both projects very low capital intensity. We also expect to be a very low-cost producer of separated rare earth oxides, as supported by initial studies. These projects position Rainbow to potentially be the lowest cost and highest margin producer of separated rare earths in the West.
Proactive: The US is actively building a strategic critical minerals stockpile. How big is that opportunity for Rainbow, and how quickly can you start supplying into it?
George Bennett: It brings Rainbow to the table with partners involved in Project Vault, which is very exciting. It represents a major strategic opportunity. In terms of supply, we are targeting production from the Phalaborwa Project at the beginning of 2029, and with Mosaic we are targeting production from the Uberaba Project in 2030. Both are very near-term projects in a mining context, with short timelines from development to production.
Proactive: George, thank you very much for your time.