South Africa Advances Rare Earth Production as Steenkampskraal Mine Nears Commercial Output

South Africa has moved closer to becoming a significant player in the global critical minerals industry after the Steenkampskraal Monazite Mine successfully produced high-purity mixed rare earth products, paving the way for commercial production later this year.

The milestone was achieved through a partnership between the Western Cape-based mining project and state-owned mineral research organisation Mintek. The companies said the development establishes the foundation for South Africa’s first commercial production of rare earth products before the end of 2026.

Rare earth elements have become increasingly valuable due to their essential role in manufacturing electric vehicles, renewable energy technologies, advanced electronics, defence systems and medical equipment. Growing global demand has intensified competition among countries seeking secure supplies of these strategic minerals.

Steenkampskraal’s Executive Chairman, Enock Mathebula, described the achievement as an important milestone for both the project and South Africa’s mining industry. He said the successful production of high-purity rare earth materials demonstrates the country’s ability to develop advanced mineral processing technologies while expanding local beneficiation and strengthening its role in global critical mineral supply chains.

The mine resumed operations in 2024 after more than six decades of inactivity. Mining activities had been suspended since 1963, but approvals from the National Nuclear Regulator and the Department of Mineral and Petroleum Resources allowed the project to restart as part of South Africa’s broader strategy to increase value-added mineral processing.

Construction of the mine’s first-phase metallurgical processing plant is currently underway after securing funding from the Industrial Development Corporation (IDC). Commissioning of the facility is scheduled for August 2026, with future expansion plans expected to include the beneficiation of individual rare earth elements, thorium processing and the production of medical isotopes.

According to the company, approximately 85% of the Steenkampskraal deposit consists of three high-value rare earth minerals whose prices rose by around 50% during 2025. The mine estimates that its total mineral reserves have a market value of approximately US$2 billion, highlighting the project’s strategic importance to South Africa’s mining sector.

South Africa possesses significant reserves of several critical minerals, including platinum group metals, manganese, chrome, vanadium and rare earth elements, positioning the country to benefit from accelerating global demand driven by the clean energy transition.

Eskom Board Chairperson Mteto Nyati recently said South Africa is well placed to become a global leader in supplying the minerals required for battery production, renewable energy infrastructure, aerospace manufacturing and other advanced industries. However, he stressed that achieving this potential will depend on maintaining a stable, affordable and reliable electricity supply capable of supporting large-scale industrial beneficiation.

Rare earth elements are indispensable components in modern technologies. Magnet rare earths such as neodymium, praseodymium, dysprosium and terbium are widely used in electric vehicle motors, wind turbines, smartphones, speakers and high-performance industrial magnets. Other rare earths, including cerium, lanthanum, europium, gadolinium and yttrium, play important roles in electronics, optical equipment, medical technologies and specialised manufacturing.

Beyond Steenkampskraal, South Africa’s rare earth ambitions are also supported by the Phalaborwa Rare Earths Project in Limpopo, which is progressing through feasibility studies ahead of securing development funding.

With commercial production drawing closer, the Steenkampskraal project is expected to strengthen South Africa’s position in the rapidly expanding global critical minerals market while supporting economic diversification, industrial development and greater value addition within the country’s mining sector.