Rainbow Rare Earths Ltd - South Africa and east Africa-focused producer of rare earth oxides - Says the front end of the pilot plant for its Phalaborwa project in South Africa has started operations. Adds it is on-track to produce the first high-value mixed rare earth sulphate in the third quarter of the year. The back end of the pilot plant is ‘well advanced’ in terms of its construction, RRE says, with commissioning due in the third quarter of 2023. Says it is exploring the option to permanently establish its back-end process in the US.

Chief Executive George Bennett says: ‘Work has continued apace on the Phalaborwa pilot plant and the production of the first mixed rare earth sulphate is expected shortly. This will affirm Phalaborwa as a strategic and near-term supply of the magnet rare earths needed to power the green economy. The back end of the plant is also progressing well, and we are exploring the possibility of establishing this commercial final separation process permanently in the US, as we see it adding huge value to Rainbow. This would position the company as one of the first producers of separated rare earth oxides within the US, which is urgently trying to establish a domestic rare earths supply chain, given the importance of rare earths to decarbonisation, defence and other strategic products vital to the 21st century global economy.’

Current stock price: 8.92 pence, up 4.9% in London on Tuesday afternoon

12-month change: down 41%

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