London-listed Rainbow Rare Earths has signed a letter of intent (LoI) to enter into an offtake agreement with international trading company Nexus Intertrade, under which Nexus will acquire gypsum from Rainbow's Phalaborwa project, in South Africa, and sell it to end-users. Rainbow expects production at the Phalaborwa project, where it will recover rare earths from phosphogypsum stacks that occur as a by-product of phosphoric acid production, to start in 2026. With the project, it is also aiming to contribute to a cleaner environment.
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