Neo has signed a memorandum of understanding with Rainbow Rare Earths. The Phalaborwa project aims to recover rare earths from fertilizer production waste.
Canadian rare earth specialist Neo Performance Materials and Rainbow Rare Earths have signed a memorandum of understanding covering the Phalaborwa project in South Africa. Rainbow plans to recover rare earths from phosphogypsum, a by-product of fertilizer production, and aims to begin production in 2028. Neo will help develop the separation process.
In return, the Canadian company could gain a new source of feedstock for its rare earth refinery and magnet plant in Estonia. The memorandum envisages offtake rights to 40% of Phalaborwa’s planned annual production of neodymium-praseodymium oxide and 65% of a mixed rare earth carbonate containing the sought-after heavy rare earths dysprosium and terbium.
The companies are also considering whether Neo could process the remaining 35% of the carbonate. The dysprosium, terbium and yttrium separated from that portion would be returned to Rainbow to market.
“Lower Development Risk Profile Than Many Greenfield Projects”
Rahim Suleman, Neo Performance Materials’ president and CEO, sees an advantage in the existing phosphogypsum stockpiles. Because the material is already at the surface and requires no new mining, the project could carry less development risk than conventional mining projects.
Neo is building additional supply relationships for its European facilities, including one with French company Carester. Brazil’s Caldeira project is also envisaged as a future source of feedstock.
Photo: alexsl via Canva, montage rawmaterials.net
