Reduce dependence on China. South African rare earth expert: Countries are willing to invest to diversify global sources of key raw materials

South Africa has made major breakthroughs in the field of rare earths this year. The first phase of refining technology was successfully developed and successfully entered commercial production. The executive manager of South Africa's National Mineral Research Institute said that countries around the world want to reduce their dependence on Chinese raw materials and are therefore more willing to invest in the rare earth industry to diversify supply sources.

In June this year, South Africa's national mineral research institution Mintek successfully refined high-purity mixed rare earth products in the laboratory, becoming the first country in Africa to achieve this technology. Subsequently, the Steenkampskraal Monazite Mine (SMM) applied this technology to its first-stage smelter and officially entered mass production in early October, and will complete the first batch of shipments before the end of the year as originally planned.

South Africa has made significant progress in the field of rare earth technology, drawing attention to its role in rare earth geopolitics.

Elmar Muller, executive manager of Mintek, was interviewed recently. Regarding the non-red supply chain issue, he said, "Although South Africa is a member of the BRICS, we have not chosen sides on rare earth policy. In fact, because countries around the world now do not want to be overly dependent on China's raw materials, they are more willing to invest in our rare earth industry."

He emphasized that any country that controls 90% of the production of key materials needed by the global economy will pose a risk. From an economic perspective, "it makes more sense to diversify supply sources."

He said that in addition to raw materials from SMM, Mintek is also actively seeking cooperation with mines in other countries in Europe, America and Africa to customize refining technology or negotiate technology licensing.

Mueller went on to analyze that an important advantage of Mintek and SMM is that they have obtained nuclear-related licenses from the South African government and can process raw materials containing radioactive materials such as thorium and uranium produced in the second stage of the process. They are the only smelters in Africa with this capability. Currently, only a few institutions in the United States and Asia have similar capabilities in the world. Taking advantage of this, South Africa aims to develop into a rare earth processing center in Africa in the future.

He also revealed that Mintek has begun to develop the second-stage smelting technology. In the second half of 2027, progress may be made in the third-stage technology to separate individual rare earth elements.

SMM Chief Financial Officer Tyrone Searle also accepted an exclusive video interview with Central News Agency. When the reporter asked which countries the first batch of buyers would be after the SMM refinery entered mass production, Searle said, "Almost all the first batch of products will be exported to China."

He pointed out that China is currently the main buyer of first-stage concentrates because there are very few countries in the world that can handle these radioactive materials, and most countries do not have the ability to carry out subsequent processing. But he also mentioned that a very small amount of the first shipment will be sent to a small pilot plant in Canada. They expect to start purchasing hundreds of tons of products from SMM in 2027 for the next stage of processing.

Seer revealed that SMM is currently negotiating with the South African government and other countries for the second phase of investment, which will cost approximately US$30 million. If the funds for the second and third phases are successfully in place, it is expected that all three phases of rare earth processing will enter mass production in 2028.

He emphasized that the advantage of SMM is that it is the mine with the highest rare earth ore body grade in the world, about 14.5%. Most other mines only have less than 1%, and even 2-4% is considered high grade. Therefore, the amount of investment it requires is much smaller than other mines.

Muller pointed out that the development of South Africa's rare earth industry is still waiting for funding. Although many countries have come to negotiate, most investors want to take away the products directly. The South African government hopes to prioritize the development of South Africa, improve technology and cultivate talents, so the parties are still in the negotiation stage.