Steenkampskraal Monazite Mine (SMM), home to one of the world’s richest rare earth and thorium deposits, has announced a significant step forward with the receipt of the first funding tranche from the Industrial Development Corporation (IDC).
This initial funding is earmarked for the Phase 1 Metallurgical Implementation, which involves constructing the mine’s concentration plant. This is the first of four planned tranches from the IDC to cover the construction costs.
“This first tranche marks a major milestone in progressing SMM toward steady-state production of Monazite Concentrate as Phase 1 of the company’s broader production strategy,” said Dr. Enock Mathebula, Steenkampskraal Chairperson and shareholder.
Phase 1: High-Grade, Low-Cost Production
The Phase 1 metallurgical plant is designed to continually deliver high-grade monazite concentrate containing over 50% Total Rare Earth Oxides (TREO). Due to its exceptional reserves and low production costs, SMM anticipates operating at one of the industry’s lowest costs per tonne.
“With an average run of mine grade of 14.4% and an average contained TREO percentage grade as high as 40%-50%, the longer-term strategy is to add further value through local beneficiation across the various phases and finally produce end-products locally, thereby positioning South Africa among the elite producers of critical minerals,” Dr. Mathebula added.
Long-Term Strategy: Value Addition and Local Beneficiation
SMM’s multi-phase project is structured to move progressively downstream in the rare earth supply chain, capturing additional value in line with South Africa’s Minerals Beneficiation Strategy.
The subsequent phases include:
Phase 2: Production of a Cerium- and Lanthanum-depleted Mixed Rare Earth Carbonate (CLDMREC) using technology from Chimerical Technology.
Phase 3: Rare Earth Element (REE) separation using Magneto-electrochemical processes, in a proposed partnership with the Remedy Group.
Phase 4: Fluorination to produce Rare Earth Fluorides using a patented process, in a proposed partnership with Rare Earth Refiners.
Phase 5 & 6: Metallization and the production of various separated end-products, currently under discussion with global partners.
Economic Impact and Green Transition
This development is hailed as a turning point for SMM, establishing it as a reliable global supplier of the rare earth elements essential for the green transition and advanced industries.
“The IDC’s investment is not only a financial boost but also a catalyst for broader economic benefits,” said Graham Soden, CEO of SMM. “Through this support, Steenkampskraal is strengthening South Africa’s industrial base, creating employment opportunities in both direct mining operations and downstream beneficiation.”
SMM is also working closely with Thor Medical and local funders to conclude agreements for the planned phases, which notably include the harvesting of Radium-228 for targeted Alpha therapy in cancer treatment.
Dr. Mathebula emphasized that SMM’s systematic implementation aligns perfectly with the nation’s strategy to transform its mineral wealth into a competitive economic advantage. The goal is to maximize value retention within South Africa’s borders and position the country as a leading participant in the global rare earths industry. The IDC, a state-owned development finance institution, is playing a central role in driving this economic growth and industrial development.