By Business Reporter – Monday 25 November 2019
HARARE (Mining Index) – LISTED London Stock Exchange (LSE) Rainbow Rare Earths recently acquired ten mining claims in northern Zimbabwe through its wholly owned subsidiary, Rainbow Zimbabwe.
The rare earths mining licences, covering 12.6km² are part of Rainbow’s expansion drive from Gakara, Burundi which has a total mining area of approximately 135km².
Rainbow began production of rare earth concentrates in Q4 2017 in Gakara, Africa’s only rare earths producing mine.
The properties, while not historically explored for rare earths, have been explored for phosphate in the past.
Rainbow Zimbabwe will hold 100 percent of the licences, with no free-carried interest for the government, in line with recent changes to the legal framework covering mining in Zimbabwe.
Speaking to Mining Index, Rainbow Zimbabwe Director Nyasha Chidoh said his organisation will start by conducting exploration, geological mapping, sampling and assaying to ascertain the exact quantities of rare earth metals.
“We will start by doing comprehensive exploration work. This will help us come up with an interpretation report focusing on rare earth elements potential, sizes, grades and mineralogy,” he said.
Rainbow Rare Earths is a mining company focussed on production from, and expansion of, the high grade Gakara Rare Earth Project in Burundi, East Africa.
Chidoh noted rare earth metals have become important on the global market due to the current trade wars between China and the United States (US) with uncertainty that the world leading REE producer, China will restrict supply to the US due to the worsening trade conflict between the two countries.
Rare earth elements are a group of 17 chemical elements .REE are all metals, and the group is often referred to as the rare earth metals used in renewable/green technologies, military equipment and various high-tech consumer electronics such as computer memory, DVDs, rechargeable batteries, cell phones, catalytic converters, magnets and fluorescent lighting.
Global demand for REEs has grown significantly in recent years driven by the increased use of rare earth permanent magnets in key markets including electric vehicles (EVs).
Zimbabwe is geologically well known for hosting a large number of minerals, including 13 million tonnes of proven reserves, battery metals, and coal. Zimbabwe is also endowed with the second-largest Platinum Group of Metals (PGM) and chrome resources globally.
Rainbow began production of rare earth concentrates in Q4 2017 in Gakara, with in-situ grades between the range of 47-67 percent. ENDS//
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