IDC funds metallurgical phase of Steenkrampskraal rare earths project
Steenkampskraal Monazite Mine (SMM), one of the world’s highest-grade rare earths and thorium deposits, has set out its six-phase production plan following confirmation of receipt of the first tranche of funding from the Industrial Development Corporation (IDC).
“The development roadmap extends far beyond conventional mining industry evolution, positioning the project as an integrated rare earths value chain,” said Steenkampskraal Chairperson and shareholder, Dr. Enock Mathebula.
The Six-Phase Development Strategy
Phase 1: Monazite Concentrate Production
- Construction of concentration plant (current IDC funding focus)
- Production of high-grade monazite concentrate containing >50% TREO
- Establishment of initial production capabilities and infrastructure
“This first phase represents the foundation upon which the entire value chain will be built, with the concentrate serving as feedstock for all subsequent processing steps,” added Graham Soden, CEO of SMM.
Phase 2: Mixed Rare Earth Carbonate
Production of Cerium- and Lanthanum-depleted Mixed Rare Earth Carbonate (CLDMREC)
Implementation of proven technology from Chimerical Technology (Pty) Limited
First step in downstream value addition process
“By removing cerium and lanthanum (the most abundant but least valuable rare earths), this phase significantly increases the value of the remaining product,” he noted.
Phase 3: REE Separation
- Implementation of magneto-electrochemical separation processes
- Proposed partnership with the Remedy Group
- On-site or near-site processing to retain value domestically
Rare earth separation represents one of the most technically challenging and value-adding steps in rare earth processing, traditionally dominated by Chinese companies.
Phase 4: Fluorination Process
- Production of Rare Earth Fluorides through patented processes
- Proposed partnership with Rare Earth Refiners
- Further advancement in the value chain toward end-use products
The fluorination process transforms separated rare earth compounds into forms more readily used in specific industrial applications.
Phase 5: Metallization
- On-site or near-site metallization capabilities
- Discussions underway with global reduction companies
- Significant value addition through advanced processing
Metallization converts rare earth compounds into pure metals, which command premium prices in industrial markets.
Phase 6: End-Product Manufacturing
- Production of separated end-products
- Discussions with global RE product manufacturers
- Complete vertical integration from mine to market
“This final phase represents the ultimate goal of full value chain integration, enabling South Africa to capture maximum economic benefit from its rare earth resources,” Soden added.
“This milestone marks a turning point in Steenkampskraal’s history to establish itself as a reliable global supplier of rare earth elements, essential for the technologies driving the green transition and advanced industries,” he said.
“Once operational, the plant will continually deliver a high-grade monazite concentrate containing more than 50% Total Rare Earth Oxides (TREO), positioning South Africa among the elite producers of critical minerals.”
Thorium and Radium-228 By-Products
“Beyond rare earths, the Steenkampskraal deposit offers valuable by-products that further enhance its economic potential,” Dr. Mathebula said. “A notable development in this area is the partnership with Thor Medical, which is working with Steenkampskraal and select local funders to conclude agreements that will enable the business to progress with harvesting Radium-228 for medical applications.”
“The IDC’s investment is not only a financial boost but also a catalyst for broader economic benefits. Through this support, Steenkampskraal is strengthening South Africa’s industrial base, creating employment opportunities in both direct mining operations and downstream beneficiation.”
“The Steenkampskraal project is structured as a series of interlinked phases, each designed to capture additional value by moving further downstream in the rare earth supply chain,” he added.
Dr. Mathebula highlighted that South Africa’s official Minerals Beneficiation Strategy, adopted in June 2011, seeks to transform the country’s mineral wealth into a competitive economic advantage through downstream value addition.
“This strategy is integrated into broader industrialisation initiatives aimed at improving export quality, creating sustainable employment, diversifying the economy, and building a knowledge-driven industrial base.
“The IDC, a state-owned development finance institution established in 1940, plays a central role in promoting economic growth and industrial development in South Africa and across the continent. It provides funding to businesses and projects that expand industrial capacity, stimulate job creation, and drive economic transformation,” he concluded.
