Steenkampskraal Monazite Mine opens rare earths concentrate plant in South Africa

South African rare earth element and thorium producer Steenkampskraal Monazite Mine has opened the first phase of its monazite concentrate plant in the Western Cape province, the company has said.

The opening marks the transition from laboratory work to commercial-scale mineral processing at the historic Steenkampskraal project, which is among the world's highest-grade rare earth and thorium deposits, the company (SMM) said in a statement.

The initial phase includes ore crushing and milling, followed by gravity separation and flotation to produce a monazite concentrate for export. Shipments to offtakers are expected to begin before the end of 2026, it added.

Phase 2 will involve cracking the monazite into a mixed rare earth product and recovering thorium, SMM said. Phase 3 will separate the mixed product into individual rare earth oxides through solvent extraction, it added.

SMM Executive Chairman Enock Mathebula said the company and South Africa's national mineral research organization, Mintek, produced high-purity mixed rare earth products in June 2026, making South Africa the first African country to achieve this.

"The plant now turns that science into a saleable monazite concentrate," Mathebula said.

SMM said the Steenkampskraal resource contains about 14.5% total rare earth oxides and 2.1% thorium, making it the highest-grade known rare earth deposit globally — roughly 10 times higher than a typical deposit.

"Far less rock needs to be mined and processed for each ton of contained rare earths recovered," said Robbie Louw, executive director of SMM.

Energy opportunity

Louw said Steenkampskraal also provides South Africa with a strategic domestic thorium resource.

"Steenkampskraal's approximately 14,000 mt of thorium has electricity-generation potential broadly equivalent to 55 billion mt of South African power-station coal," he said.

In a mature, closed thorium fuel cycle, supplying electricity at roughly South Africa's current national level would consume only about 30 mt/year of thorium. On that basis, Louw said the Steenkampskraal resource alone could support approximately 500 years of electricity generation at current levels.

SMM is proposing to use South Africa's only nuclear power station, Koeberg, to qualify thorium fuel before progressively deploying it in a new nuclear fleet. This would include the proposed 5,200-MW Thyspunt nuclear power station and establish a domestic market for a South African thorium-fuel industry before the company targets exports.

The company's longer-term plans include thorium beneficiation and medical-isotope production, as well as energy-generation technology and medical applications. Thorium daughter products are also being assessed for use in targeted alpha therapy for cancer treatment.

South Africa's minerals and oil minister, Gwede Mantashe, opened the plant alongside other government and state-agency officials.

Platts, part of S&P Global Energy, last assessed dysprosium, terbium and samarium oxide FOB North America prices as unchanged month over month at $2,300/kilogram, $4,900/kg and $800/kg, respectively, on Sept. 30.