Name of the Project
Steenkampskraal rare earths mine project.

Location
The mine is located in the Western Cape, South Africa.

Client
Steenkampskraal Holdings.

Project Description
The Steenkampskraal mine is an existing mine that produced and exported a monazite concentrate during the 1950s and 1960s.

The mine is one of the highest-grade rare earths and thorium mines in the world, with average grades of 14.4% rare earths and 2.14% thorium.

The mine’s design has been developed to make optimum use of the existing underground infrastructure and is based on conventional stoping techniques, tramming the ore to the bottom of the incline shaft and hoisting the ore up the incline shaft. Production is targeted at 2 700 t/y of mixed rare-earth oxides.

About 30 000 t/y of ore will be mined and processed, after allowing for ore dilution during the mining process. At this rate of production, the project will have a mine life of about 25 years.

Potential Job Creation
About 200 jobs are expected to be created.

Net Present Value/Internal Rate of Return

The net present value of the project is estimated at R1.201-million and the internal rate of return at 53.3%.

Value
The capital expenditure for the project is currently estimated at about R500-million.

Steenkampskraal Holdings will save about 80% in mine construction costs as it will use most of the existing infrastructure at the mine.

Duration
Construction is expected to take about 12 months.

Latest Developments
Steenkampskraal Holdings reported in June this year that a bankable feasibility study (BFS) on the project was expected to be completed in the next 6 to 12 months.

After the BFS is finalised, Steenkampskraal Holdings will try to secure the necessary financing to build the mine, processing plant and other required infrastructure.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Steenkampskraal Holdings, tel +27 21 852 4998, fax +27 086 619 7330 or email info@steenkampskraal.com