US backs South Africa rare earths project

Phalaborwa: A US-backed initiative in South Africa is set to extract rare earth elements from two enormous dunes of industrial mining waste at Phalaborwa. The project has secured a $50 million equity investment from the International Development Finance Corporation (DFC). The move is part of an accelerated effort by the Trump govt to cut US dependence on China for minerals vital to robotics, electric vehicles and defence systems. 

The Phalaborwa Rare Earths Project is moving forward despite a significant diplomatic rift. While Trump issued an executive order to halt financial aid to South Africa in Feb, the administration continues to prioritise strategic mineral interests. Rainbow Rare Earths, the developer, plans to begin extracting elements like neodymium and praseodymium from 35 million tonnes of phosphogypsum waste in 2028. Construction of the processing factory is anticipated to start in early 2027. 

Rainbow Rare Earths CEO George Bennett said the project’s low-cost production model is comparable to Chinese producers. The extraction process will use 90% renewable energy. “Heating is the most expensive part of the process.”