Rainbow Rare Earths rises 8% on $916m Brazil project assessment and Mosaic deal

Rainbow Rare Earths Ltd (LSE:RBW, OTC:RBWRF, FRA:RR1), the LSE-listed captious minerals company, roseate 8% to 28p aft unveiling a $916 cardinal nett contiguous worth economical appraisal for its Uberaba uncommon earths task successful Brazil and signing a associated improvement statement with Mosaic, the New York-listed fertiliser giant.

The Uberaba project, located successful the Minas Gerais authorities of Brazil, would extract uncommon world elements from phosphogypsum, a discarded merchandise generated during phosphoric acerb accumulation astatine Mosaic's existing operations connected site, utilizing proprietary processing exertion developed by Rainbow.

The economical appraisal estimates a post-tax interior complaint of instrumentality of 45%, mean yearly net earlier interest, tax, depreciation and amortisation of $217 cardinal implicit a 30-year excavation life, and a superior payback play of conscionable 1.7 years, based connected a superior expenditure of $279 million.

Rainbow and Mosaic person signed a associated task improvement statement to beforehand a pre-feasibility study, with the volition of establishing a associated task successful which Mosaic would clasp 51% and Rainbow 49%, taxable to last dialog of terms.

The partners are targeting archetypal accumulation by 2030, taxable to further studies, regulatory approvals and financing.

The task mirrors Rainbow's flagship Phalaborwa task successful South Africa, which uses the aforesaid phosphogypsum processing approach, and the institution said lessons learned astatine Phalaborwa could let Uberaba to beryllium developed connected a faster timeline.

George Bennett, main enforcement of Rainbow, said Brazil was emerging arsenic a strategically important uncommon earths hub for the Americas, with beardown involvement successful backing from the United States and allied nations seeking to physique proviso concatenation independency from China.