You’ve probably never heard of the South African rare-earth mine in Steenkampskraal. And why would you? The term ‘rare earth’ doesn’t actually mean the deposits are particularly rare. But rather, that mining them is more expensive and labour intensive. And less quantities are therefore extracted.
Nevertheless, due to a conflagration of circumstances, the South African rare-earth mine situated 350 km from Cape Town, is about to experience a boom. Because President Donald Trump and the United States are looking reduce their reliance on China for rare-earth materials …
SOUTH AFRICAN RARE-EARTH MINE
As such, the South African rare-earth mine at Steenkampskraal represents a tremendous drawcard for any trade talks. According to Daily Investor, China currently accounts for just over 60% of all rare-earth extraction globally. That’s a near-monopoly that gives China a significant advantage over supply chains for things like electric vehicles (EVs), cellphone batteries and even complex military weapons.
However, while the US explores options on its mainland and Australia, the Steenkampskraal Monazite Mine is already sitting on one of the world’s richest deposits. And is already home to advanced mining infrastructure. That’s because it was operated by Anglo American 60 years ago, between 1952 and 1963. It is estimated that this South African rare-earth mine is perched on 665 000 tonnes of untapped oxides.
BREAK CHINESE MONOPOLY
As a result, when rare earths seemed relatively unimportant 30 years ago, before BEVs, cellphones, etc – China laid its groundwork. It was the only nation investing heavily in extracting and processing. There are only so many specific deposits of rare earths around the world. And the high-grade, hard-rock monazite vein at Steemkampskraal is the most famous. The deposits are extremely high-grade (15%) and relatively easy to mine.
Moreover, the South African rare-earth mine has largely been abandoned since Anglo American stopped mining in 1963. Now and exciting new six-phase production plan has been revealed to bring it back to life by 2027. Funding will come in tranches from the Industrial Development Corporation (IDC).
REVIVING THIS SOUTH AFRICAN RARE-EARTH MINE
Operating companies estimate it will require R1 billion to fully resuscitate the operation. To its advantage is that the mine is relatively shallow, with an average depth of 100 metres. It contains 15 rare earths, which include: noedynium, praseodymium, dysprosium and terbium. It’s anticipated that the South African rare-earth mine has a remaining lifespan of 25 years. And a certificate from the National Nuclear Regulator to mine naturally occurring radioactive materials is already in place.
What do you think? Is this South African rare-earth mine about to experience a new boom? Let us know in the comments section below …
