Modern Mining May 2017

RARE EARTHS

with Gashirwe starting up in month 13. Assuming successful completion of the trial mining phase, Rainbow intends ramping up production to 5 000 t/a (420 tonnes per month) of concentrate. The process flowsheet for the beneficiation plant is based on physical gravity separation only (there is no need for hazardous chemicals) and will see the ROM ore being subjected to crushing, screening, jigging and shaking table processes to produce concentrate. The plant will have a capacity of 10 t/h but be capable of ramping up to 5 000 t/a. Rainbow has recently awarded the EPCM contract for the design, sup- ply and construction of the plant to Obsideo Consulting of South Africa with the agreed commissioning date being in the fourth quarter of this year. As this article was being written, prepara- tion for mining at the first production site, Gasagwe, was well advanced with the con- struction of haulage and access roads, as well as basic infrastructure, in progress and a locally recruited labour force in place and ready to start on the extraction of ROM ore from the high grade veins. To implement the project, Rainbow has assembled a strong team which includes Braam Jankowitz as Project Manager, Gilbert Midende as General Manager, Cesare Morelli as Technical Director and Joël Ntungwanayo as Chief Geologist. Jankowitz is a geologist (he has an MSc Geology) but is also well versed in mine management having served, prior to joining Rainbow, as GM of the New Luika gold mine in Tanzania while Midende has a doctorate in geology and has served as the Burundi Director of Geology and Mines and also as Burundi’s Minister of Mines. Morelli, also a geologist, was previously Minerals Exploration Manager for Africa with BHP Billiton while Ntungwanayo has a background with BHP Billiton and the Burundi Geological Survey. Rainbow enjoys strong support from the Government of Burundi, which is keen to estab- lish a formal mining industry in the country and which has a 10 % free carry in the project, and from local communities. While the mine will be relatively small in scale, the manual mining methods to be employed mean that the work- force may eventually number in the region of 200 people – a welcome number of job opportu- nities in an area where most people depend on subsistence farming for their livelihoods. A strength of the project is that the Gakara ‘basket’ is weighted heavily towards the mag- net rare earths, including neodymium and

praseodymium which now account for 70 % of annual global REE sales due to their use in equipment such as motors, generators, wind turbines and electric vehicles. Many commen- tators are predicting strong growth in demand for rare earths over the coming decade, with some seeing prices quadrupling by 2025. According to Rainbow, the contained value of Gakara concentrate samples (on a separated basis) is in the region of US$6 000/tonne as against operating costs – in the first year – of US$810/tonne and transport, marketing and royalty costs of US$280/tonne. Gakara will almost certainly be the first of the current crop of African rare earth projects to enter operation. Most, if not all, of the oth- ers are burdened by huge capex costs (although they are many times larger in scale than Gakara) and appear to be years rather than months away from production. To give examples of the capi- tal expenditures required, the just released BFS on the Ngualla project of Peak Resources in Tanzania estimates the capex at US$356 mil- lion (which includes a refinery in the UK) while the 2015 PFS on the Zandkopsdrift project of Frontier Rare Earths in South Africa estimated a capex of more than half a billion dollars just for the first phase of development. As Eales says, “Gakara is a niche project which can’t really be compared with anything else. The combination of high grade and a tiny capex make it unique. Although we’re not in a race with anyone else to be first to market, it does indeed look as though we will be the first of the African projects currently under development to enter production. We have a clear road ahead and are confident that we will achieve first sales of concentrate by the end of this year.” Photos courtesy of Rainbow Rare Earths

A typical example of ore from the Gakara project.

Rainbow enjoys strong support from the Government of Burundi, which is keen to establish a formal mining industry in the country.

May 2017  MODERN MINING  25