Steenkampskraal Monazite Mine (SMM), one of the world’s highest-grade rare earth and thorium deposits, has confirmed that its first tranche of funding required for construction of its Metallurgical Phase has been released by the Industrial Development Corporation (IDC).

“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,” said Steenkampskraal Chairperson and shareholder, Dr. Enock Mathebula.

“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,” he said.

“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,” added Graham Soden, CEO of SMM.

Phase Two will expand operations to produce cerium- and lanthanum-depleted mixed rare earth carbonate (CLDMREC), a product in strong demand from global technology and defense industries. Phase Three advances to full rare earth element separation on, or near, the mine site, capturing significantly higher margins.

Thor Medical, working closely with Steenkampskraal, and select local funders are in the process of concluding agreements, to allow the business to progress with the additional planned Phases. 

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.