- Mining group Rainbow Rare Earths said an updated feasibility study had pegged the construction cost of a processing facility in South Africa for its Gakara rare earths project at $35.2 million.

The study was conducted by Metallurgical Engineering Technology and Construction to re-validate a preliminary economic assessment in 2015 by SGS Lakefield Canada.

It confirmed the feasibility of a 10,000 tons per annum rare earths element cracking plant, doubling its capacity from the 5,000 ton capacity originally proposed.

Rainbow said the new capital cost compared favourably to the previous estimate of $22.3 million for the smaller plant.

'The estimated capital and operating costs of this plant would likely be some of the lowest in the industry and therefore viable even in the event of volatile rare earths prices,' chief executive George Bennett said.

'This confirms our belief that Gakara has the potential be a low capital intensity project.'

At 9:58am: [LON:RBW] Rainbow Rare Earths Ltd share price was 0p at 5.94p

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