The Phalaborwa Rare Earths Project in South Africa is getting a lot of attention. It is a new project that could help the world move towards cleaner energy.
The project has 35 million tonnes of rare earth minerals. These minerals contain 0.44% total rare earth oxide (TREO). This makes it a valuable resource for the future. This resource is contained within phosphogypsum stacks left over from historic phosphate hard rock mining operations.
What makes Phalaborwa special is the high amount of neodymium (Nd) and praseodymium (Pr) oxides. These are important for making magnets used in electric cars, wind turbines, and other clean energy technologies. These two oxides make up 29% of the rare earth oxides in the project. It also has valuable dysprosium (Dy) and terbium (Tb) oxides, which add even more value.
Strong Economic Indicators and Growing Resource
In October 2022, a Preliminary Economic Assessment (PEA) of the Phalaborwa project revealed a robust economic outlook. The base case estimated a net present value (NPV10) of US$627 million, with an internal rate of return (IRR) of 40%. The assessment also highlighted an impressive EBITDA operating margin of 75%, with a payback period of just two years. The PEA showed a plan to process 2.2 million tonnes of phosphogypsum every year for 14 years. This would make 26,208 tonnes of rare earth oxides at a good price. The average cost is US$33.86 per kilogram.
In 2024, a new Mineral Resource Estimate showed a 15% increase in the amount of material. This could add two more years to the project. This makes Phalaborwa an important supplier of rare earth elements for green technologies.
Advanced Processing Technology and Environmental Benefits
Phalaborwa’s success is also tied to its cutting-edge extraction and processing techniques. A process flowsheet developed by Rainbow Rare Earths, the project’s developer, involves the hydraulic reclamation of phosphogypsum, followed by treatment in a hydrometallurgical plant. The plant extracts rare earths and produces a high-grade feed stream for separation.
Phalaborwa is different from other rare earth projects because it uses special methods called continuous ion exchange (CIX) and continuous ion chromatography (CIC). These methods are better for the environment and work faster than the usual ways of separating rare earth elements. This helps make Phalaborwa a leader in eco-friendly rare earth mining.
With an updated technical report published in September 2024 detailing the extensive test work and flowsheet refinements, the Phalaborwa project continues to draw attention for its innovative approach and economic promise.
The Path Ahead
As the world moves toward renewable energy and electric cars, projects like Phalaborwa are very important. They help provide the raw materials needed for this energy change. Phalaborwa has a lot of valuable rare earth elements. It also uses eco-friendly methods to process them, which makes it a key player in the rare earth market.
Phalaborwa has a bright future. It can greatly affect the global supply of important minerals. This project is ready to meet the rising demand for rare earth elements in green technologies.For more information about Phalaborwa events, news, history and culture, visit our website or contact us at +27 15 781 7760 for advertisements!