Rainbow Rare Earths Eyes a US Listing as Its South Africa Project Advances
SOUTH AFRICA · CRITICAL MINERALS
Key Facts
- —The country South Africa is one of Africa’s largest economies and a major mining nation; Phalaborwa lies in Limpopo, its northernmost province.
- —The company Rainbow Rare Earths, listed in London, plans to recover rare earths from two old phosphate waste stacks at Phalaborwa.
- —What happened Chief executive George Bennett told investors on Monday 5 October that a US listing, if it goes ahead, would come during 2027.
- —The US link The US International Development Finance Corporation (DFC) holds a US$50 million option to fund equity in the Phalaborwa project.
- —The numbers A December 2024 study valued the project at US$611 million after tax, with upfront capital costs of US$326.1 million.
- —What it means for you US investors may gain a new listed route into rare earth supply outside China. This is not investment advice.
- —Still open No final decision, no named US exchange and no fundraising size yet; first production has moved to early 2029.
Rainbow Rare Earths, which plans to recover rare earths from phosphate waste in South Africa, is edging towards a US stock listing. If it goes ahead, the listing would take place during 2027, chief executive George Bennett told investors on Monday 5 October.
Bennett spoke at an online investor presentation announced to the London Stock Exchange on Wednesday 30 September. Miningmx, a South African mining news site, reported his remarks the same day, including a later start for the Phalaborwa project.
What Rainbow Rare Earths Has Told the Market
On Tuesday 5 May, Rainbow told the London Stock Exchange that its board was evaluating “the potential benefits” of a US listing. It cited heavy US investment in rare earth supply, its American partners and the better valuations and liquidity of US-listed companies.
Its March share sale was “supported predominantly by US-based investors”, the company said, among them the commodities group Traxys. Rainbow calls Traxys a key partner in Project Vault, a US$12 billion US government plan to stockpile critical raw materials.
On Thursday 30 July, Rainbow Rare Earths hired BMO Capital Markets, part of BMO Financial Group, as financial adviser and joint broker. The bank also supports the review of a US listing.
On Thursday 24 September, Rainbow said its next Phalaborwa study would follow Regulation S-K 1300. These are the rules the US Securities and Exchange Commission sets for how mining companies that report to it disclose their projects.
A US listing would have no effect on the London listing, Bennett said on Monday, according to Miningmx. The company expects trading in its shares to shift increasingly towards the United States over time.
The South African news site News24 reported the story on Monday evening. It said Rainbow Rare Earths wants to tap deeper pools of capital and growing American appetite for critical minerals.
What the Phalaborwa Project Is
Phalaborwa is a mining town in Limpopo, South Africa’s northernmost province. Phosphoric acid production there, which ended in 2014, left two stacks of phosphogypsum, a chalky waste that still holds rare earths.
Because the waste already sits at the surface in a chemically broken-down form, Rainbow says it can skip mining, crushing and grinding. It owns 85% of the project and can buy the other 15% from Bosveld, the site’s owner.
A December 2024 study put the project’s after-tax net present value, today’s worth of its future cash flows, at US$611 million. It put upfront capital costs at US$326.1 million, for 16 years of operation.
The plan is to make about 1,800 tonnes a year of neodymium-praseodymium (NdPr) oxide, the key material in the strongest permanent magnets. Smaller amounts of dysprosium, terbium and yttrium would come in a mixed heavy rare earth product.
Why Washington Is Watching Phalaborwa
In December 2023, the DFC, the US government’s development finance agency, agreed to fund a US$50 million option held by TechMet. TechMet, a critical minerals investor part-owned by the DFC, is also a strategic shareholder in Rainbow Rare Earths.
Under the 2023 terms, TechMet’s direct stake in Phalaborwa would be between 15% and 33%, depending on the final study. The option can be exercised for three months after Rainbow receives a credit-approved term sheet for construction loans.
In September, Rainbow signed a memorandum of understanding with Neo Performance Materials, a Toronto-listed rare earth processor. Neo would buy 40% of the NdPr oxide and 65% of the heavy rare earth product, and help design the separation stage.
Rainbow’s September statement ties prices to rare earth price indices; Miningmx reported the pricing as “market pricing plus a premium”. In Brazil, Rainbow is studying a similar project with Mosaic, the fertiliser group based in Tampa, Florida.
Kenya, too, has drawn American interest, with two US bidders shortlisted in its rare earths tender.
A Later Start for Production
Bennett said early construction would begin in the last quarter of 2027, with “initial production in the early part of 2029”. The company’s project page still points to first production from 2028.
A pre-feasibility study is due in the last quarter of 2026. The definitive feasibility study, the bankable final plan, should follow in the first half of 2027, later than Rainbow expected in March.
Rainbow expects about two-thirds of the project funding to come from loans and one-third from equity, Miningmx reported. It plans to raise the equity later in 2027, possibly alongside a US listing.
The company believes a US listing could raise that money at a higher valuation, with less dilution for existing shareholders. Lenders usually want about 80% of output under sales contracts before they lend, Bennett said.
What It Means for US Readers
For investors, a US listing would make shares in a pre-production rare earths developer easier to buy from the United States. Rainbow Rare Earths had no sales revenue and lost US$5.9 million in the six months to December 2025.
For policy, the DFC option makes Phalaborwa one of the projects Washington backs for magnet metals outside China. China’s April 2025 export controls sent European yttrium oxide prices from about US$6 to US$220-320 a kilogram by November 2025, Rainbow says.
This article is not investment advice. A company without a working plant carries construction, permitting, price and financing risks.
What Is Not Known
Rainbow has not announced which US exchange it would choose, the form of the shares or the amount it would raise. The pre-feasibility study should let it finish the review and set a firm timetable, Miningmx reported.
That study will update the economics for the first time since December 2024. The US$611 million value and US$326.1 million cost may change, and the Neo agreement is not yet binding.
In March, Rainbow said it still needed a lease on state land inside the Bosveld industrial complex, plus water, waste and air emissions licences.
Delay also costs money, as a royalty sold to Ecora Royalties rises to 1.10% from 0.85% if commercial production starts after 30 June 2028. Rainbow’s March accounts already assumed the higher rate.
For context on the country, see the Rio Times guide to South Africa and its neighbours in Southern Africa.
More: South Africa news in English, every day from The Rio Times.
What is Rainbow Rare Earths?
Rainbow Rare Earths is listed on the Main Market of the London Stock Exchange under the code RBW. It is developing Phalaborwa in South Africa and, with Mosaic, the Uberaba project in Brazil.
Has Rainbow decided to list its shares in the United States?
No. The board has been evaluating a US listing since May 2026. On 5 October, chief executive George Bennett said that if it goes ahead, the listing would take place during 2027.
What role does the US government play at Phalaborwa?
The US International Development Finance Corporation funds a US$50 million option held by TechMet to take an equity stake in the project. It can only be used once a credit-approved term sheet for construction debt is in place.
When will Phalaborwa start producing rare earths?
Bennett said early construction should begin in late 2027, with initial production in early 2029. A pre-feasibility study is due by the end of 2026 and the definitive study in the first half of 2027.
Why does Rainbow Rare Earths use phosphate waste instead of a mine?
The rare earths at Phalaborwa sit in waste stacks left by phosphoric acid production. Rainbow Rare Earths says this avoids mining, crushing and grinding, which lowers costs and risks.
Sources: Rainbow Rare Earths (RNS), Evaluation of a Listing in the United States of America, 5 May 2026; Rainbow Rare Earths (RNS), Appointment of BMO Capital Markets, 30 July 2026; Rainbow Rare Earths (RNS), MoU with Neo Performance Materials; update on PFS and DFS, 24 September 2026; Rainbow Rare Earths (RNS), Investor Presentation on Investor Meet Company, 30 September 2026; Rainbow Rare Earths (RNS), Interim Results for six months to 31 December 2025, 31 March 2026; Rainbow Rare Earths (RNS), Interim Economic Study for Phalaborwa, 16 December 2024; Rainbow Rare Earths (RNS), DFC to fund proposed US$50 million TechMet investment, 5 December 2023; Rainbow Rare Earths (RNS), Surge in Yttrium Pricing, 24 November 2025; Rainbow Rare Earths, Phalaborwa project page, accessed 6 October 2026; Miningmx, Rainbow targets US listing as SA project shifts to 2029, 5 October 2026; News24, As US interest builds in Phalaborwa, Rainbow Rare Earths eyes American listing, 5 October 2026.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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