Rare earth mining company Rainbow Rare Earths is to be listed on the London Stock Exchange. This will allow investors to purchase shares of the company, which mines rare earth minerals in Burundi.
It is anticipated that by listing on the stock exchange, the mining contractor will be able to raise about £5.7 million, which it intends to use to restart a mine in Burundi. Gakara mine was operational for 30 years until 1978. However, the mining company states that it still has ample deposits of rare earths.
There was a time at the start of the decade when the demand for rare earths was high, but as the prices of rare earths started declining, the demand also began diminishing. However, Rainbow Rare Earths believes that minerals such as cerium, lanthanum and neodymium, which are present in Gakara mine, have a high demand as they are required in the manufacture of batteries and magnets, and also in the automotive industry.
Rainbow Rare Earths Managing Director Martin Eales said that as the population grows, the demand for batteries, automobiles and magnets will increase. Therefore, it will give impetus to the company’s business.
The company believes that the rare earths present in the Burundi mine are of extremely high grade and therefore will require minimal processing. Eales said that this will help to keep the company’s costs low. He also said that the process of mining these minerals was relatively simple. The mineral grade is so high that it is possible to extract the rare earths using just excavators and manual labour, according to Eales.
Rainbow Rare Earths revealed that it has entered into an agreement with ThyssenKrupp. The German company will be purchasing all the minerals that are extracted from Gakara mine. The mining contractor claims that the agreement with ThyssenKrupp is a testament of Rainbow Rare Earths’ capabilities and quality of produce.