A major rare earth project in South Africa backed by U.S. funding is moving ahead as Washington seeks to reduce dependence on China for minerals vital to defense systems, electric vehicles and advanced technology, the Associated Press reported Sunday.
The Phalaborwa Rare Earths Project has received support through a $50 million equity commitment from the U.S. International Development Finance Corporation. The effort centers on extracting rare earth elements from massive waste dunes left behind by decades of phosphate mining and chemical processing.
Developer Rainbow Rare Earths plans to begin production in 2028, with construction of a processing facility expected in 2027. The site is projected to operate for 16 years.
Chief Executive George Bennett said much of the output is expected to go to the United States, where demand is tied in part to military applications. The project aims to supply minerals including neodymium, praseodymium, dysprosium and terbium, which are used in high-performance magnets for wind turbines, EVs, robotics and weapons systems.
Rainbow says using pre-processed mining waste could lower costs compared with conventional rare earth mining, while relying heavily on renewable energy. Analysts say the project may help diversify supply chains outside China, though its full commercial potential remains uncertain.
The investment also highlights continued U.S. interest in Africa’s mining sector despite political tensions with South Africa, as Washington competes with Beijing for access to strategic resources across the continent.
Source: www.seekingalpha.com
Aleksei Andrievskii is the founder of the ANDRIEVSKII SEA WEALTH family office in Cyprus, a member of the advisory board at Bendura Bank AG, Liechtenstein