Photo by: ©Reuters
Name of the Project
Steenkampskraal rare earths mine project.
Location
Western Cape, South Africa.
Project Owner/s
Steenkampskraal Holdings (SHL). Steenkampskraal Monazite Mine holds the mining right for the Steenkampskraal rare earth mine.
Project Description
The Steenkampskraal mine is an existing mine that produced and exported a monazite concentrate during the 1950s and 1960s.
The mine is one of the highest-grade rare earths and thorium mines in the world. The mine deposit is rich in neodymium/praseodymium (NdPr), 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.
The project will be developed over three phases.
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 concentration plant and start of underground mining. A minimum of 5000 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 earth separation plant will also be undertaken in 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. Phase 3 expected revenue for separated rare earths, based on an average price of $37 000/t a year, will generate an NPV of more than $620-million.
Capital Expenditure
The project will require low initial capital.
Planned Start/End Date
The first monazite concentrate is expected to be produced by December 2024.
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 202,7 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
Producer and supplier of alpha-particle emitters for cancer therapy Thor Medical has signed a memorandum of understanding with SHL for feedstock supply and technology cooperation.
The aim is for the parties to enter into a long-term partnership agreement for the supply of feedstock, as part of Thor Medical’s strategy of developing multiple feedstock suppliers.
SHL has said the mine’s abundant resources of natural thorium are sufficient to meet the global demand for medical isotopes from its depletion for the foreseeable future.
Construction of the Steenkampskraal monazite mine is targeted to start by the end of 2024. Production of thorium is targeted for the end of 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