Feasibility study progresses as engineering work accelerates
Rainbow Rare Earths (LSE:RBW) has announced further progress on the Definitive Feasibility Study (DFS) for its Phalaborwa rare earths project in South Africa, where the company plans to recover rare earth elements from phosphogypsum waste rather than through conventional mining.
The pilot plant operated successfully throughout the first half of 2026, allowing approximately 75% of the project’s processing flowsheet to be completed and advanced into the engineering stage.
Simplified process aims to lower costs and reduce technical risk
Rainbow has made several changes to streamline the project design, including replacing hydraulic reclamation with a mechanical system, eliminating an entire weak acid leach circuit and reducing the number of leaching stages. The revised approach lowers the requirement for capital-intensive equipment while improving operational efficiency.
The company has also substituted the more complex acid bake and continuous ion chromatography processes with a continuous ion exchange system linked to a relatively compact solvent extraction circuit. The updated flowsheet is designed to produce high-purity NdPr oxide and other high-value rare earth products more efficiently, with lower operating costs and reduced technical risk, supporting the project’s ambition to become a low-cost producer in the near term.
Development progress offsets current financial pressures
Rainbow’s investment outlook continues to be constrained by its current financial profile, with the company remaining pre-revenue while reporting ongoing losses and negative cash flow.
However, management has highlighted encouraging project economics, successful pilot plant performance, continued progress on the processing route and an improved funding runway. Technical indicators also provide modest support through a generally positive longer-term trend, although short-term momentum remains neutral. Valuation metrics continue to reflect the absence of earnings and dividend income.
More about Rainbow Rare Earths
Rainbow Rare Earths is developing an independent and sustainable supply of rare earth elements used in clean energy technologies and advanced industrial applications. The company specialises in recovering rare earths from phosphogypsum, a by-product of fertiliser production, and is advancing the Phalaborwa project in South Africa alongside the Uberaba project in Brazil to serve industrial, energy and defence markets.
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