Rainbow Rare Earths Shares Surge 8% on $916M Brazil Project Deal with Mosaic

Key Facts

Shares of Rainbow Rare Earths jumped 8% to 28p on the London Stock Exchange following the announcement of a strategic agreement with New York-listed fertilizer giant Mosaic. The partnership focuses on the Uberaba project in Minas Gerais, Brazil, which aims to extract rare earth elements from phosphogypsum, a waste byproduct of Mosaic’s phosphoric acid production. The initiative will utilize Rainbow’s proprietary processing technology to recover materials from waste, targeting a position in the lowest-cost quartile of the global industry. A recent economic assessment for the project revealed a robust post-tax net present value (NPV10) of approximately $916 million. CEO George Bennett stated that the project is designed to replicate the successful model of the company’s Phalaborwa project at a second major production site. This development marks a significant milestone for Rainbow Rare Earths as it secures a high-margin production platform. Investors view the move as a strong fundamental catalyst for the company’s long-term growth in the critical minerals sector.