A rare earth mining project in the Western Cape’s Matzikama Local Municipality is positioning South Africa as a key player in the global critical minerals market, with the potential to create jobs and transform the regional economy.
The Steenkampskraal Monazite Mine recently opened its phase 1 concentrate plant, with government officials visiting the site to mark the milestone. The mine houses one of the world’s highest-grade rare earth deposits and represents a strategic opportunity for South Africa to develop its critical minerals sector.
What will be mined
The Steenkampskraal deposit contains about 14.5% total rare earth oxides and 2.1% thorium. The mine extracts monazite ore, a mineral rich in rare earth elements that are essential for manufacturing high-performance permanent magnets used in electric vehicles, wind turbines, industrial motors and defence systems.
These rare earth elements have become increasingly valuable as global demand for clean energy technologies grows. The magnets enable electric vehicle motors and wind turbine generators to operate efficiently, with demand for these materials doubling since 2015.
The deposit is considered the world’s highest-grade rare earth resource, giving South Africa a competitive advantage in an industry currently dominated by China.
Phase 1 operations now under way
The mine’s phase 1 concentrate plant became operational in October after construction began in April. The facility uses crushing, milling, gravity separation and flotation processes to extract rare earth elements from the ore.
The plant produces approximately 13 400 tonnes of monazite concentrate annually, containing more than 50% total rare earth oxides. Production started at about 6 600 tonnes per year and is ramping up to full capacity.
The mine has secured multiple offtake agreements for its concentrate, with the first export shipments planned before the end of 2026. This establishes an early revenue stream while the mine develops more advanced processing capabilities.
The Industrial Development Corporation provided full funding for the phase 1 metallurgical processing plant, demonstrating government support for the project.
Next phase focuses on beneficiation
Phase 2 will see construction of a monazite cracking plant to produce cerium- and lanthanum-depleted mixed rare earth carbonate and thorium. This phase will also include recovery of radium-228 for medical isotopes.
In June, the mine partnered with national research institution Mintek to successfully produce high-purity mixed rare earth products in laboratory settings. This technical breakthrough creates a bridge between current concentrate production and future downstream beneficiation.
The project is structured into six progressive phases designed to move from raw material extraction toward high-value end-product manufacturing. Later phases target full rare earth element separation to produce individual rare earth oxides, followed by fluorination processes, metallisation and ultimately manufacturing of permanent magnets for electric vehicles, wind turbines and defence systems.
This approach aims to keep more value in South Africa rather than exporting raw materials for processing elsewhere.
Economic impact for Matzikama
The mine operates under a social and labour plan approved by the Department of Mineral and Petroleum Resources in 2025, with a focus on long-term community resilience and youth empowerment.
The project has committed to supporting small, medium and micro enterprises in the Matzikama region through local procurement, community-based transport opportunities and broader empowerment initiatives. The company provides practical training, mentorship and leadership development programmes aimed at increasing workplace readiness and entrepreneurship among local youth.
By establishing a domestic rare earth processing hub, South Africa can reduce reliance on imported processed materials and position itself as an alternative global supplier of critical minerals. This creates export revenue opportunities and broadens the national tax base while developing industrial capabilities.
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The mine holds approvals from the National Nuclear Regulator for handling naturally occurring radioactive materials associated with the ore, as well as a mining right valid until 2030 with renewal options and a water use licence for operations.
As global demand for electric vehicles and renewable energy continues to grow, the Steenkampskraal project offers the Western Cape an opportunity to participate in high-value manufacturing chains that support the transition to clean energy.
Source: Steenkampskraal.com
Lise Beyers
novanews.co.za