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, each one designed to capture additional value by moving further downstream in the rare earth supply chain.

Phase 1 is operational, producing monazite concentrate through crushing, milling, gravity separation and flotation. Phase 1 is designed to produce a minimum of 5 000 t/y of monazite concentrate.

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 (MREC) and thorium. The design and planning of a rare earths separation plant will also be undertaken during this phase.

Phase 3 will separate individual rare-earth oxides using solvent extraction piloted at South African national mineral research organisation Mintek.

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 MREC, 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 is expected to require low initial capital.

Planned Start/End Date
Phase 1’s opening was announced on October 6, 2026. First concentrate shipments are planned before the end of 2026.

Latest Developments
SMM has opened its Phase 1 concentrate plant and secured several concentrate offtake agreements. 

The opening follows the June 2026 production of high-purity mixed rare-earth products at Mintek’s laboratories.

Monazite cracking has been validated by Mintek and the Saskatchewan Research Council. Further phases will develop mixed rare-earth products, thorium recovery and individual oxide separation.

Key Contracts, Suppliers and Consultants
Mintek and the Saskatchewan Research Council (process validation); Thor Energy (thorium-fuel development partner). 

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