By: Discovery alert

The global rare earth market is undergoing a fundamental transformation driven by innovative extraction methodologies that offer superior cost structures and bypass the capital-intensive processes of conventional mining. South Africa’s emerging rare earth sector, exemplified by projects like Phalaborwa, is demonstrating how waste-stream utilization and ultra-high-grade deposits can deliver competitive advantages, particularly in supplying magnet-grade elements critical for electric vehicles, wind turbines, and advanced electronics.

The Phalaborwa project redefines rare earth economics by processing phosphogypsum—a surface-level waste material from decades of phosphate fertilizer production. Unlike traditional operations that require extensive drilling, blasting, crushing, and milling, this approach accesses a pre-cracked mineral resource, significantly reducing both capital and operating costs. With an estimated 35 million tonnes of phosphogypsum containing approximately 0.4% rare earth elements, the project offers a 17-year operational lifespan and high resource confidence.

A key strategic focus is the production of high-value neodymium and praseodymium (NdPr), which constitute about 30% of the rare earth content at Phalaborwa—a notably higher concentration than in many global deposits. The project employs continuous ion exchange (CIX) technology, developed locally, to efficiently concentrate rare earths with lower energy consumption compared to conventional methods. This technology, supported by partnerships with South Africa’s state-owned metallurgical research organization Mintek, enables on-site refinement into market-ready oxides, capturing greater value within the supply chain.

The operation aligns with growing Western demand for diversified and secure rare earth supplies, especially as electric vehicle production and renewable energy infrastructure expand rapidly. By integrating environmental remediation—systematically reclaiming gypsum for industrial use—the project also addresses sustainability concerns while extracting commercial value.

The model established at Phalaborwa has significant replication potential across global phosphoric acid production facilities, offering a scalable blueprint for converting industrial waste streams into strategic mineral resources. This positions South Africa not only as a future low-cost producer but also as an innovator in sustainable rare earth extraction, capable of influencing global supply dynamics and supporting the transition to green technologies.