PROJECTS AND EXPLORATION •
From January 2027 onwards an additional USD15 – 20-million capital will be raised . This will be for the steady state production of monazite concentrate , increased RoM production and monazite concentrate for the cracking plant and the production of mixed RE carbonate and thorium . Following this , individual RE oxides are planned to be produced .
Soden said the market for rare earth elements is projected to triple by 2035 according to an Adamas Intelligence report , with a CAGR increase of 8.3 % in total market demand . RE prices are expected to have a CAGR increase of between 3.2 % and 3.7 %. The market value of RE is projected to be about USD46.2-billion by 2035 globally .
“ The problems the industry is currently experiencing are that RE prices are dependent on Chinese national policies . China can control RE prices simply by adjusting the supply . China exercises lower levels of environmental and legislative control and as a result 40 %– 50 % of RE production is grey or illegal . Currently , 80 %– 90 % of rare earth elements come from China , which poses significant geopolitical and environmental risks .”
He said the Steenkampskraal mine deposit is rich in Neodymium , Praseodymium ( NdPr ), Dysprosium , Terbium and other RE 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 %.
He added that Anglo American developed the mine to an average depth below surface of 100m along a 400m strike , with three mining levels and access through a 140m decline and 28m vertical shaft . Much of the reef drives and stopes have been left unmined . “ Ground conditions are geotechnically competent , enabling rapid re-commissioning of mining operations .
“ Large volumes of blasted ore have been left underground , ready to be reclaimed . The orebody varies in thickness and dip , and will be mined conventionally by employing a combination of mining methods . The planned optimised techno-economic development plan will be ongoing to further improve efficiencies . Due to existing face availability , minimum development will be required initially .”
Ground conditions are geotechnically competent , enabling rapid re-commissioning of mining operations .
He said a minimum of 5000tpa of monazite concentrate will be produced in the first phase . A proven conventional gravity separation and flotation processing plant will be used based on the successful Anglo American process in 1952 .
Steenkampskraal is fully licensed to commence mining and to produce monazite concentrate , mixed rare earth carbonate and thorium , and separated RE oxides ( Phases 1 , 2 and 3 ).
Base case revenue NPV assumptions are based on the production of 5 000 tonnes of monazite concentrate per annum at an average price of USD6 000 per tonne . In the first phase , the value of monazite concentrate will generate a NPV greater than USD200-million . In the second phase the value of mixed rare earth carbonate excluding thorium will be USD5 200 / tonne with an expected NPV greater than USD300- million . In phase three , expected revenue for separated RE ’ s based on an average price of USD37 000 / tonne per annum will generate a NPV greater than USD620-million .
Soden said the mine will be 100 % dependent on renewable energy within two years of commissioning . “ As an underground mine it will have negligible surface impact , with all environmental approvals in place with ongoing rehabilitation of the historical footprint .
“ Rare earths are a critical contributor to the low-carbon energy industry while thorium is a clean energy fuel of the future and could be used in molten salt reactors . The mine ’ s ongoing Social and Labour Plan ( SLP ) projects are geared to leaving a lasting legacy with a broad-based employee equity partnership of 26 % through the company ’ s B-BBEE structure , and management is committed to transparent and sustainable governance principles .” •
Source : Supplied by Steenkampskraal Monazite Mine
Summary :
• Highest grade rare earths resource in the world at 14.5 % on average (> 90g / t gold equivalent )
• Brownfields project with well-developed underground and surface infrastructure ( ZAR1-billion sunk costs )
• Relatively small-scale volumes required due to exceptionally high average grade
• The planned optimisation investigations will draw from advanced information from historical mining , processing , resource definitions and feasibility studies
• An optimised techno-economic development plan to be implemented to further improve efficiencies
• The low-risk 3-stage development plan will require low initial capital
• Fully licensed to operate
www . africanmining . co . za African Mining Publication African Mining African Mining • January 2024 • 15