Brazil Project a ‘Major Opportunity’ to Replicate Rainbow’s South African Successes

Why It Matters

The project offers a low‑cost, waste‑derived source of critical rare‑earths, reducing dependence on Chinese supply chains and supporting U.S. strategic mineral security.

Key Takeaways

• Uberaba targets 2.7 Mt/yr phosphogypsum processing.
• Project forecasts $916 M post‑tax NPV.
• IRR estimated at 45% with 1.7‑year payback.
• JV structure: Mosaic 51%, Rainbow 49%.
• Extracts NdPr and SEG+ at >99.5% purity.

Pulse Analysis

The emergence of waste‑derived rare‑earth extraction marks a shift in the sector, where environmental concerns and supply‑chain risks have long plagued traditional mining. Rainbow Rare Earths leverages its Phalaborwa intellectual property to turn phosphogypsum—a by‑product of phosphoric‑acid production—into a high‑grade source of light and heavy REEs. This approach not only mitigates the ecological footprint of mining but also taps an underutilized resource, potentially reshaping the economics of REE supply.

Brazil’s Minas Gerais state, already a hub for phosphate mining, now offers strategic value for the broader rare‑earth market. By aligning with Mosaic, a seasoned producer of phosphate and potash, Rainbow gains access to existing infrastructure, feedstock reliability, and technical expertise. The economic assessment’s headline figures—$916 million NPV, 45% IRR, and a sub‑two‑year pay‑back—signal a cost advantage that could place Uberaba among the industry’s most competitive projects. For the United States, which seeks to diversify its critical mineral supply chain, the Brazil‑based venture provides a geopolitically favorable source within the Americas.

While the assessment is promising, it remains a pre‑feasibility exercise and does not meet JORC scoping standards. Final outcomes will hinge on the negotiated joint‑venture terms, definitive feasibility studies, and the scalability of the 57% recovery rate demonstrated in laboratory tests. If Rainbow successfully replicates Phalaborwa’s operational model, the Uberaba project could accelerate the rollout of low‑cost REE production, bolstering sectors from electric vehicles to defense electronics and offering investors a high‑margin, long‑life asset.