Brazil Takes Open Approach, US Unveils $10B "Project Vault" for Critical Minerals

South Africa's mining industry still faces obstacles from regulatory and operational bottlenecks, requiring long-term sustained investment in exploration and development to fully unlock its potential. South Africa's mining industry and its direct suppliers provide nearly 900,000 jobs and sustain 3.6 million livelihoods. The mining industry has a strong multiplier effect, and developing the mining sector can promote economic growth and create employment opportunities. However, developing the mining industry requires investment, which also demands a globally competitive regulatory and operational environment, said Mthenjane Mzila, Director of the Minerals Council South Africa (MCSA).

Brazil seeks to avoid signing exclusive agreements on critical minerals with other countries, instead maintaining an open stance and pursuing partnerships with various nations. Recently, the U.S. government disclosed details of "Project Vault" (PV), an initiative led by the U.S. Export-Import Bank (EXIM) aimed at formulating a strategy to secure domestic supplies of critical minerals. The EXIM Board approved up to $10 billion in direct loans for PV, more than double the largest financing amount in the bank's history. PV is designed to shield U.S. domestic manufacturers from supply shocks, expand the production and processing of critical raw materials in the U.S., and fundamentally improve the state of the U.S. critical minerals industry.

Rainbow Rare Earths Ltd. has informed investors that its large-scale pilot plant in Johannesburg has recently commenced official operation. The plant is currently operating as expected with the optimized Phalaborwa primary process and has successfully produced approximately 2 kg of high-grade mixed rare earth hydroxides, which possess commercial value. This mixed rare earth product has a grade of about 55% TREO, higher than the industry average of 42-44% TREO specified by the Chinese standard for mixed rare earth carbonate.