KEY POINTS
- Steenkampskraal rare earth mine secures IDC tranche.
- Phase 1 plant to deliver high-grade concentrate.
- Strategy targets beneficiation and downstream end-products.
Steenkampskraal Monazite Mine, home to one of the world’s richest rare earth and thorium deposits, has received the first tranche of funding from South Africa’s Industrial Development Corporation to begin building its Phase 1 metallurgical plant.
The financing marks the start of a multistage plan to move South Africa deeper into the rare earths value chain, with the mine aiming to supply high-grade monazite concentrate and later expand into advanced processing and end-product manufacturing.
IDC backs rare earth expansion strategy
“This first tranche marks a major milestone in progressing SMM toward steady-state production,” said Chairperson Enock Mathebula. He also said the IDC will release funding in four tranches to cover construction of the initial concentration facility.
The Phase 1 plant will deliver monazite concentrate with more than 50 percent total rare earth oxides, benefiting from Steenkampskraal’s average run-of-mine grade of 14.4 percent among the highest globally.
Steenkampskraal rare earth phases outlined
Future phases include production of mixed rare earth carbonate, separation using magneto-electrochemical processes, fluorination, metallisation, and localised end-product output. Firms such as Chimerical Technology, Remedy Group, and Rare Earth Refiners are already exploring partnerships.
CEO Graham Soden said the strategy will boost South Africa’s industrial base, create jobs, and further align with the government’s minerals beneficiation plan. “Each phase is designed to capture additional value by moving further downstream,” he said.
Rare earths and South Africa’s green future
The mine’s output is also intended to support global industries tied to the green transition, from electric vehicles to renewable energy storage. The project also holds potential medical applications, with Thor Medical exploring Radium-228 harvesting for cancer therapies.
Mathebula described the IDC’s support as both financial backing and a “catalyst for broader economic benefits,” adding that it positions South Africa as a serious player in the global rare earth supply chain.
