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    US rare earth strategy and Rainbow’s Phalaborwa: cost and metallurgy lens for engineers

    August 1, 2026|

    Reviewed by Joe Ashwell

    US rare earth strategy and Rainbow’s Phalaborwa: cost and metallurgy lens for engineers

    First reported on MINING.com

    30 Second Briefing

    US backing for Rainbow Rare Earths’ Phalaborwa project in South Africa signals a shift from tonnage-led to metallurgy-led rare earth strategy, with $50 million of US equity supporting recovery of Nd and Pr from a 35‑million‑tonne phosphogypsum stack. The project leverages prior mining and fertiliser processing, negligible Thorium/Uranium in the feed, and a proprietary cerium‑depletion step removing about 65% of low‑value Ce to target operating costs below US$30/kg Nd+Pr. Coupled with a US$500 million US‑Africa Strategic Investment Program, this points to supply‑chain resilience built on cost‑competitive, international partnerships rather than purely domestic deposits.

    Technical Brief

    • Phalaborwa’s 35 Mt phosphogypsum stack is an above-ground “artificial orebody”, avoiding new pit development and primary crushing.
    • Historic fertiliser operations already completed ore extraction, comminution and phosphoric acid leaching, shifting capex focus almost entirely to REE recovery circuits.
    • Rainbow Rare Earths’ flowsheet targets early cerium rejection via a proprietary depletion step, decoupling economics from natural La–Ce dominance.
    • Negligible thorium and uranium in the phosphogypsum sidestep NORM handling, tailings licensing and long-term radiological stewardship typical of many REE projects.
    • Ionic adsorption clays are cited as benchmarks because weakly bound REEs enable low-temperature leaching without roasting, cutting energy intensity versus hard-rock carbonatites.

    Our Take

    Rainbow Rare Earths also appears in our coverage via TechMet’s planned $200 million raise for a broader critical minerals portfolio, signalling that Phalaborwa is being positioned within a multi-asset, multi-jurisdictional supply chain rather than as a standalone bet on South Africa.

    With Washington’s $50 million equity into Phalaborwa sitting alongside a $500 million US-Africa Strategic Investment Program envelope, the US is effectively using South African rare earths to complement emerging domestic plays like Rare Earths Americas’ Shiloh/Foothills district, diversifying away from a single-country supply strategy.

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    Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.

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