IDC Backs Metallurgical Phase of South Africa’s Steenkampskraal Rare Earths Project

The Industrial Development Corporation (IDC) has officially disbursed the first tranche of funding to the Steenkampskraal Monazite Mine (SMM), launching Phase 1 of an ambitious six-phase program aimed at creating South Africa’s first fully integrated rare earths value chain. Located in the Western Cape, the Steenkampskraal project is globally recognized for hosting one of the highest-grade deposits of rare earth elements (REEs) and thorium. This investment marks a significant milestone not only for the mine but for South Africa’s wider critical minerals strategy, which seeks to position the country as a competitive global supplier to clean energy, electric vehicle, and high-technology sectors.

Phase 1 of the project will focus on constructing a concentration plant capable of producing monazite concentrate exceeding 50% total rare earth oxides (TREO). This stage is fundamental in transforming raw ore into a high-value concentrate suitable for advanced processing. The broader six-phase roadmap is designed to move progressively up the beneficiation chain, from concentrate production to mixed rare earth carbonate manufacturing, REE separation, fluorination, metallization, and ultimately, the production of final high-tech components. Such a structure ensures full vertical integration, allowing South Africa to capture greater economic value locally rather than exporting unprocessed minerals.

SMM has outlined several strategic partnerships to support the technical and industrial complexity of this initiative. Proposed collaborations with Remedy Group, Rare Earth Refiners, and Chimerical Technology (Pty) Ltd will enhance expertise in refining, chemical processing, and advanced metallurgical techniques. Additionally, Steenkampskraal intends to extract thorium and Radium-228 as by-products, valuable for nuclear and medical applications. The company is working closely with Thor Medical to explore the use of Radium-228 in targeted cancer therapies, representing an innovative intersection between mining and biotechnology.

This initiative is deeply aligned with South Africa’s 2011 Minerals Beneficiation Strategy, which prioritizes downstream processing, industrialization, and job creation within the mining sector. By building domestic capabilities in rare earth separation and metal production, South Africa can reduce reliance on imports, strengthen its green technology sector, and support global supply diversification in a market currently dominated by China. The IDC’s financial backing signals strong institutional confidence in the project’s potential to drive local industrial growth, foster skills development, and establish a new frontier in Africa’s high-value minerals sector.

The Steenkampskraal project thus stands as a transformative development for both South Africa and the broader African continent. Its successful execution could redefine the region’s participation in global critical mineral supply chains, supporting the transition to renewable energy technologies and the digital economy. Moreover, by promoting vertical integration and local beneficiation, the project reinforces Africa’s strategic role in the emerging green industrial revolution.

Mini-Glossary

• TREO (Total Rare Earth Oxides): The combined percentage of all rare earth elements in a mineral deposit or concentrate.
• Monazite: A phosphate mineral rich in rare earth elements, commonly used as a source of REEs and thorium.
• Beneficiation: The process of adding value to raw minerals through local processing and manufacturing.
• Vertical Integration: The consolidation of all production stages, from mining to end-product manufacturing, within one system.
• Thorium/Radium-228: Radioactive elements with applications in nuclear energy and medical isotope production.