[Burundi] Rainbow Rare Earth set for first sale of minerals by end of 2017
Rainbow, the rare-earth element mining company, has inaugurated Gakara Rare Earth Project in Burundi with the first production and sales of rare earth concentrate targeted in Q4 2017.
Martin Eales, CEO of Rainbow, commented: "The Gakara Project is currently the most advanced mining development project in Burundi and Rainbow was pleased to welcome so many honoured guests to our ceremony today. We value highly all of the support that we have received from the Government of Burundi and the local population.
"Our mining activity at Gasagwe continues to make great progress in readiness for the commissioning of our processing plant and first sales of rare earth concentrate as planned in Q4 this year. The commencement of production at Gakara is timely as market prices for rare earths have strengthened significantly in the period since Rainbow's IPO and these increases will directly impact our anticipated sales revenues."
Rainbow's focus is the Gakara Project in Burundi, one of the highest-grade (47-67% Total Rare Earth Oxide) rare earths projects globally. In January 2017, the Company raised US$8 million to fast-track the fully permitted Gakara Project to production ahead of targeted first sales of concentrate by the end of 2017.
Rainbow has a ten-year distribution and offtake agreement with multinational thyssenkrupp Raw Materials secured for the sale of at least 5,000 tpa of concentrate produced.
The Gakara basket is weighted heavily towards the magnet rare earths, including neodymium and praseodymium, which are driving demand and account for 70% of annual global REE sales due to their use in vital components in motors, generators, wind turbines, and electric vehicles.