South Africa is no stranger to mineral wealth. For more than a century, its gold, platinum, diamonds and manganese have helped shape the country’s economy and supplied industries around the world.
Today, however, a different group of minerals is attracting global attention—rare earth elements.
Recent breakthroughs at the Steenkampskraal Monazite Mine in the Western Cape, combined with growing international demand for critical minerals, have positioned South Africa as an emerging player in one of the world’s fastest-growing mining sectors.
With rare earth reserves at Steenkampskraal estimated to have a current market value of approximately R33 billion, investors are closely monitoring the country’s progress toward commercial production.
A Milestone for South African Mining
The Steenkampskraal Monazite Mine and South Africa’s national mineral research organisation, Mintek, recently announced the successful production of high-purity Mixed Rare Earth (MRE) products—a significant milestone for the country’s mining industry.
The achievement marks the first time South Africa has demonstrated the capability to produce mixed rare earth products locally, creating the foundation for a domestic beneficiation industry instead of relying solely on exporting raw mineral concentrates.
According to the companies, commercial production of rare earth products is expected to begin before the end of 2026.
“This forms the foundation of the commercial production of rare earth products in South Africa before the end of 2026,” the partners said in a joint statement.
Long-term plans extend beyond mining and include rare earth element separation, thorium beneficiation and even the production of medical isotopes, opening the door to higher-value manufacturing industries.
Why the R33 Billion Figure Matters
The R33 billion figure frequently associated with Steenkampskraal refers to the estimated market value of the mine’s rare earth reserves at current prices—not the cost of developing the project.
The mine’s operators revealed that three key rare earth minerals, which account for approximately 85% of the deposit, experienced a 50% increase in market prices during 2025. Rising demand from electric vehicles, renewable energy technologies and advanced electronics has significantly improved the economic outlook for high-grade rare earth projects worldwide.
A Mine Returns After Six Decades
Steenkampskraal is not a new discovery.
The mine originally operated during the mid-20th century before closing in 1963. After remaining inactive for more than six decades, operations resumed in 2024 following regulatory approvals from South Africa’s National Nuclear Regulator and the Department of Mineral and Petroleum Resources.
Construction of the project’s first metallurgical processing plant is now underway, supported by funding from the Industrial Development Corporation (IDC). Commissioning is scheduled for August 2026, marking another important step toward commercial production.
Why Rare Earths Matter
Rare earth elements are a group of 17 metallic elements that have become indispensable to modern technology. Although they are relatively abundant within the Earth’s crust, they are seldom found in economically viable concentrations and are technically challenging to separate and refine.
Among the most valuable are the so-called “magnet rare earths”—neodymium, praseodymium, dysprosium and terbium. These elements are essential for manufacturing high-performance permanent magnets used in:
* Electric vehicle motors
* Wind turbines
* Industrial robots
* Defence equipment
* Aerospace technologies
* Smartphones and audio devices
Other rare earth elements such as cerium, lanthanum, europium, gadolinium and yttrium are widely used in camera lenses, display technologies, medical equipment, batteries and precision electronics.
As nations invest heavily in clean energy and digital technologies, demand for these materials continues to rise.
Building More Than a Mine
For South Africa, the opportunity extends beyond extracting minerals.
The country’s latest breakthrough demonstrates progress in beneficiation—the process of converting raw minerals into higher-value products before export.
“This is not only a victory for Steenkampskraal and Mintek, but a victory for South Africa,” said Steenkampskraal Executive Chairman Enock Mathebula.
“It demonstrates the country’s ability to develop world-class technologies, create local beneficiation opportunities, and participate meaningfully in global critical mineral supply chains.”
Developing local processing capabilities could help South Africa capture greater economic value, create skilled jobs and strengthen its position within global supply chains.
Energy Remains the Biggest Challenge
Despite the optimism surrounding the sector, industry leaders caution that reliable electricity remains essential for South Africa’s critical minerals ambitions.
Eskom Board Chair Mteto Nyati recently highlighted the country’s vast geological advantages while stressing that energy security will determine whether those opportunities are fully realised.
“South Africa sits on a treasure trove of platinum, manganese, chrome, vanadium, rare-earth critical minerals the world desperately needs,” Nyati said.
“The green industrial revolution is here, and we are geologically blessed to lead it.”
However, he added:
“We can have all of these dreams of beneficiation, but not without fixing Eskom.”
Reliable, affordable electricity will be critical if South Africa hopes to expand processing capacity and develop downstream manufacturing industries.
More Opportunities on the Horizon
Steenkampskraal is not the country’s only rare earth project.
The Phalaborwa Rare Earth Project in Limpopo, being developed by Rainbow Rare Earths, is progressing through its feasibility stage and could become another important source of rare earth supply in Southern Africa.
Together, these projects signal growing momentum for South Africa’s critical minerals sector.
The Outlook
As governments seek to diversify global supplies of critical minerals away from concentrated markets, South Africa has an opportunity to become a strategically important supplier of rare earth products.
The country’s combination of high-grade deposits, mining expertise, expanding beneficiation capabilities and growing investment interest places it in a favourable position to benefit from the global transition to cleaner energy and advanced manufacturing.
If current projects remain on schedule, South Africa could soon move from being primarily an exporter of mineral resources to becoming a recognised producer of value-added rare earth products—creating new opportunities for investors, manufacturers and the broader economy.
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