US Invests in Rare Earth Mining in South Africa

0:00It's April 19, Canada news today starts now, AI-powered and ready. In South Africa, two massive dunes of mining waste at an old chemical plant in Fallaborwa are turning into a gold mine for rare earth elements. Rainbow Rare Earths is leading the project, backed by a $50 million investment from the U.S. International Development Finance Corporation. These dunes hold 35 million tons of phosphogips and byproduct, packed with minerals like neodymium and disprozium, vital for electric vehicles, defense tech and wind turbines. This move fits the U.S. push to break free from China's grip on rare earths, which power everything from robots to high-tech gadgets. Even with the diplomatic freeze, Trump halted most aid to South Africa last February. The project rolls on, prioritizing strategic minerals over politics. The DFC committed the funds back in 2023 under Biden, and now it's advancing U.S. interests in Africa's untapped resources.

1:02Experts see big potential here. Analysts call it a low-cost operation, using up to 90% renewable energy and skipping the pricey heating steps since the waste was already processed. Company leaders aim to supply mostly the U.S., especially for defense, helping fill the gap as global demand surges beyond what China can handle. Production kicks off in 2028, running 16 years once the factory builds in early 2027. It's cheaper than traditional mining because the materials are ready to go, putting it on par with top Chinese producers. This fallabor will play as just one piece of the U.S. catching up in Africa, with more deals in places like Mozambique and support for rail lines hauling. Examples from Congo and Zambia, smart moves to secure the future of tech and security.