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 considered 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.

Steenkampskraal has been structured as a series of interlinked phases, every one designed to capture additional value by moving further downstream in the rare earth supply chain.

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 – a brown crystalline mineral comprising a phosphate of cerium, lanthanum, other rare-earth elements and thorium – concentration plant and start of underground mining. A minimum of 5 000 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 earths separation plant will also be undertaken during 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. In Phase 3, the expected revenue for separated rare earths, based on an average price of $37 000/t, will generate an NPV of more than $620-million. 

Capital Expenditure
The project will require low initial capital.
 
Planned Start/End Date
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
The first tranche of funding required for construction of the metallurgical phase of the project was released by the Industrial Development Corporation in October 2025.

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