Name of the Project
Steenkampskraal Monazite Mine (SMM).

Location
Western Cape, South Africa.

Project Owner/s
Steenkampskraal Holdings (SHL). 

Project Description
The Steenkampskraal mine is an existing mine that produced and exported a monazite concentrate during the 1950s and 1960s.

The mine is one of the highest-grade rare earths and thorium mines in the world. The mine deposit is rich in neodymium/praseodymium dysprosium, terbium and other rare-earth minerals. The primary elements at the mine are neodymium – 56.59%, dysprosium – 14.19%, praseodymium – 12.43%, terbium – 9.62% gadolinium – 2.12% and cerium – 1.95%.

The mine’s design has been developed for optimum use of the existing underground infrastructure and is based on conventional stoping techniques, tramming the ore to the bottom of the incline shaft and hoisting it up the incline shaft.
The project will be developed over three phases.

Phase 1 will involve the mobilisation of the mining and processing plant and equipment to the site, refurbishment of the decline and shaft area, and the re-equipping of the headgear and infrastructure.

Material and loose ore from underground will be reclaimed followed by the construction of the monazite concentration plant and start of underground mining. A minimum of 5000 t/y of monazite concentrate will be produced in the first phase.

Phase 2 will involve increased mining volumes and monazite concentrate production and all metallurgical testwork, design and planning for the construction and commissioning of a monazite cracking plant. This will produce mixed rare-earth carbonate and thorium. The design and planning of a rare earth separation plant will also be undertaken in this phase.

The construction and commissioning of the separation plant will be completed to produce mixed rare-earth oxides in Phase 3. 

Potential Job Creation
About 200 jobs are expected to be created.

Net Present Value/Internal Rate of Return
In Phase 1, the value of monazite concentrate will generate a net present value (NPV) of more than $200-million. In Phase 2, the value of mixed rare-earth carbonate, excluding thorium, will be $5 200/t with an expected NPV of more than $300-million. Phase 3 expected revenue for separated rare earths, based on an average price of $37 000/t a year, will generate an NPV of more than $620-million. 

Capital Expenditure
The project will require low initial capital.
 
Planned Start/End Date
The first monazite concentrate is expected to be produced by December 2024.

From January 2026 to December 2026, the cracking plant will be commissioned, with the initial production of mixed rare-earth carbonate and thorium. 

From January 2027 the steady-state production of monazite concentrate to the cracking plant will be undertaken, with the production of mixed rare-earth carbonate and thorium and plans to produce individual rare-earth oxides.

Latest Developments
SMM is moving out of care and maintenance to prepare for production, following approval by the National Nuclear Regulator (NNR) to proceed with the refurbishment of the mine’s infrastructure and reclamation of monazite material.

The reclamation process will involve the removal of underground stockpiled blasted and ballast material to the surface for placement onto the existing feed-to-plant stockpile.

Upgrading the infrastructure will involve the construction of new ablution blocks and offices, as well as surface water runoff controls and retention dams.

Also, security facilities will be upgraded to comply with the NNR requirements.

The company has also reported that it will shortly start with a recruitment drive to employ staff, mostly from feeder villages in the area as part of its strategy to create local employment and generate local economic development.

On further approval from the NNR, for which Steenkampskraal Holdings is waiting, it will proceed with the installation of a laboratory-scale processing plant. It will use a novel technology that will start with a proof-of-concept test phase for the generation of monazite concentrate.

“Following the success of the test, a lab-scale installation of a monazite concentrate cracking plant will further extend our level of plant design and efficiencies,” SMM CEO and mine manager Graham Soden has said.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
SHL, tel +27 21 852 4998, fax +27 086 619 7330 or email info@steenkampskraal.com