The head of state recommended to this company to extract this mineral by confirming itself to the law including the protection of people’s lives and the environment. According to the president Nkurunziza, the mining sector in Burundi will boost the development of the country in an exceptional way to the side of the agricultural sector. He announced that the State of Burundi has 15 percent of the shares in this company.
Rainbow Rare Earths (LON:RBW) focus is the Gakara Project in Burundi, one of the highest-grade (47%-67% Total Rare Earth Oxide) rare earths projects globally and the only African producer.
The Company began production of rare earth concentrates in Q4 2017 and is currently ramping up to a targeted run rate of 5,000tpa by the end of 2018 and 6,000tpa by the end of 2019. Rainbow has a ten-year distribution and offtake agreement with multinational thyssenkrupp Materials Trading secured for the sale of at least 5,000tpa of concentrate produced.
The Gakara basket is weighted heavily towards the magnet rare earths, including neodymium and praseodymium, which are driving demand and account for 70% of annual global REE sales due to their use in vital components in motors, generators, wind turbines, and electric vehicles.