JOHANNESBURG (miningweekly.com) - South Africa's Mineral Resources Department has granted a new-order mining for the Steenkampskraal monazite project in the Western Cape, Rare Earth Extraction Co (Rareco) and Great Western Minerals Group announced on Thursday.

Rareco chairperson Trevor Blench said that the company planned to bring the Steenkampskraal monazite mine into production as one of the first new rare-earth mines outside China.

Monazite is a reddish-brown phosphate mineral containing rare earth metals and is an important source of thorium, lanthanum, and cerium.

Last year, Canada-based GWMG entered into an option agreement with Rareco of Stellenbosch to refurbish, recommission and operate the abandoned Steenkampskraal mine, near Vanrhynsdorp. It also agreed to a right to acquire access to the rare-earth elements mined at Steenkampskraal.

GWMG CEO and president Jim Engdahl said that the Steenkampskraal mine was projected to be one of the highest-grade rare-earth mines in the world and, therefore, one of the world's lowest-cost producers.

With the issuance of the new-order mining right, GWMG and Rareco are now moving towards finalising the supply agreement. The companies noted that the drafting of the supply agreement was well under way and, when finalised, would give GWMG the right to purchase 100% of the rare-earth products recovered from the mining and processing of the Steenkampskraal ore.

Engdahl said that the company intended to purchase the rare-earth concentrate from the mining operation for further separation and concentration.

"That means we would be able to use this supply source to serve current and future rare-earths customers."

GWMG owns two rare-earth processing facilities: one in the UK and one in the US.

CWMG advisory board member and Areva South Africa chairperson Mohamed Madhi pointed out that the development of the Steenkampskraal mine also represented a significant milestone for South Africa and signalled the establishment of rare-earth mining activity and the development of related industries arising from the beneficiation of rare-earth metals resulting in new skills and competencies.

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