Mining Intelligence and News
South Africa

Phalaborwa Project

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Categories

Summary

Mine TypeTailings
Study CompletedPreliminary Economic Assessment
Study in ProgressFeasibility
StagePermitting
Commodities
  • REE
Mining Method
  • Hydraulic mining
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Mine Life... Lock
SnapshotThe Phalaborwa project in South Africa offers a near-term opportunity to produce all four magnet rare earths essential for the green energy transition. The project involves processing phosphogypsum stacks, a by-product of phosphoric acid production ceased in 2014.

The surface-level resource reduces costs and risks compared to traditional mining.Rainbow Rare Earths Ltd’s unique flowsheet enables rare earths to be leached and upgraded into a mixed feed stream for further processing.

In September 2024, an updated Resource increased tonnage by 15% to 35 Mt, extending project life. For the first time, the MRE includes the SEG group (samarium, europium, gadolinium), lanthanum, and cerium.

The Definitive Feasibility Study (DFS), including pilot plant optimization, is set for completion in 2025, following the production of Phalaborwa's first saleable magnet rare earth elements on 18 September 2024.

Owners

SourceSource
CompanyInterestOwnership
Bosveld Phosphates (Pty) Ltd. 15 % Indirect
Rainbow Rare Earths Ltd. 85 % Indirect
Rainbow Rare Earths Ltd. owns 85% of the Phalaborwa project and holds an option to acquire the remaining 15% from Bosveld Phosphates (Pty) Limited.

Contractors

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Deposit type

  • Tailings

Summary:

The deposit is a secondary deposit (residue precipitate) from an earlier mine processing operation, comprising two tailings stacks, Stack A and Stack B. The stacks comprise thinly bedded, white, fine-grained, and friable PG laid down as horizontal layers.

The 2-billion-year-old (Archean) Phalaborwa Carbonatite Complex contains apatite-bearing zones, the primary source of South African phosphate production. Phalaborwa carbonatite contains two types of apatite ores: foskorite and pyroxenite.

The manufacture of phosphoric acid from phosphate concentrate produced a phosphogypsum waste which has been deposited on 2 large stacks. The REE in the phosphate ore reports primarily to the phosphate concentrate delivered to the PA plants.

The two stacks are situated to the West of the Phalaborwa mining complex. The residue stacks were deposited on a relatively flat base, consisting of soil and gravel, which was intersected in some of the drill holes.

Stack A, the largest of the 2 stacks, with an approximate basal dimensions of 1,200 m x 700 m, has a higher surface elevation and steeper slopes. An acidic water pond (with a depth of c.4 m at its deepest central part) covers most of the top centre of the stack. Some gypsum has been mined for agriculture purposes has been removed from the NE corner of stack A.

Stack B, with an approximate basal surface of 800 m x 650 m, is lower and has gentler slopes than stack A. The acid pond on top is smaller, but with a depth virtually the same as for stack A. Some gypsum quarrying and mining has taken place in the SE and SW corners of stack B.

In both stacks, the material is made of white, fine-grained, friable phosphogypsum which is indurated/cemented at surface. The gypsum residues have been deposited as a thinly bedded layered sediment pack; however, various other facies have also been observed at surface depth. The gypsum takes a grey colouration at surface (caused by magnetite dust from the nearby dump used to feed to the magnetite plant) but becomes white underneath.

Around and probably in the floor of the acid water ponds, the surface material is made of a hard/cemented gypsum crust 5 to 10 cm thick.

Auger and open-hole drilling carried out by RRE in 2020 and 2022 has showed that the phosphogypsum material is very uniform in colour and grain size from surface to the bottom of the stacks. Moisture content increases with depth ranging from relatively dry to totally sloppy to a point that samples cannot be recovered using conventional drilling methods. The homogeneity of the stacks was confirmed by the relative uniformity of the REE grades, laterally and at depth.

The host apatite ore that originally contained the REE’s has a favourable distribution of individual elements dominated by Neodymium (Nd), Praseodymium (Pr) and Dysprosium (Dy). The REE’s were upgraded by the Foskor concentration process and then again during the phosphoric acid production process where REE reported to the phosphogypsum residue deposited on the stacks.

Reserves

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Mining Methods

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Required Heavy Mobile Equipment

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Comminution

Crushers and Mills

Milling equipment has not been reported.

Processing

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Commodity Production

CommodityUnitsAvg. AnnualLOM
REE t 1,84826,208
All production numbers are expressed as oxide.

Operational metrics

Metrics
Annual ore mining rate  ....  Subscribe
Annual processing capacity  ....  Subscribe
* According to 2022 study.

Production Costs

CommodityUnitsAverage
Cash costs (sold) Total Rare Earth Oxides USD  ....  Subscribe
Assumed price Dysprosium USD  ....  Subscribe
Assumed price Terbium USD  ....  Subscribe
Assumed price Praseodymium USD  ....  Subscribe
Assumed price Neodymium USD  ....  Subscribe
Assumed price Total Rare Earth Oxides USD  ....  Subscribe
* According to 2022 study / presentation.

Operating Costs

CurrencyAverage
G&A ($/t milled) USD  ....  Subscribe
Total operating costs ($/t milled) USD  ....  Subscribe
* According to 2022 study.

Project Costs

MetricsUnitsLOM Total
Total CapEx $M USD  ......  Subscribe
Gross revenue (LOM) $M USD  ......  Subscribe
Operating margin, %  ......  Subscribe
After-tax NPV @ 10% $M USD  ......  Subscribe
After-tax IRR, %  ......  Subscribe
After-tax payback period, years  ......  Subscribe

Personnel

Mine Management

Job TitleNamePhoneProfileRef. Date
....................... Subscription required ....................... Subscription required ........... Subscription required Subscription required Jan 19, 2025
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Workforce

EmployeesContractorsYear
...... Subscription required ...... Subscription required 2022

Aerial view:

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