CANADIAN rare earth processor Great Western Minerals Group expects output of 2700 tons a year from its South African rare earth mine in two years' time, company executives said yesterday.
When Steenkampskraal mine, 400km northwest of Cape Town, cranks up again - it was officially closed in 1965 - it will make Great Western one of the few non-Chinese firms mining and processing rare earth minerals.
"Not only will we be one of the very few integrated rare earth producers in the world, we will be one of the first to produce the critical heavy rare earths," chief executive Jim Engdahl told the mining indaba in Cape Town.
Rare earths, which are used in smartphones and hybrid cars, as well as in the aerospace industry, abound in the high-grade ore at Steenkampskraal, said Engdahl.
"As a result of the grade, it will produce more heavy rare earth per tonne than any other known deposit in the world today," he said.
China produces over 95percent of the world's rare earths, triggering global concerns about the Asian economic powerhouse dominating production, especially after recent cuts to export quotas sent prices of individual oxides soaring.
Engdahl said South Africa, already the world's top platinum and a major gold producer, could emerge as a global leader in rare earth exports, driven by Chinese demand for the minerals.
"The big opportunity here that people haven't recognised is that China will become a net importer by 2014-15," he said.
Great Western is spending R300million rehabilitating Steenkampskraal after its closure nearly 50 years ago because of a lack of profitability.
But the site has about 30000 tons of known rare earth deposits, enough for 10 years' production at a planned output rate of less than 3000 tons a year.
Further exploration is planned at Steenkampskraal and other sites in South Africa in a bid to boost annual production to 5000 tons, Engdahl said.
Great Western sees output growth
CANADIAN rare earth processor Great Western Minerals Group expects output of 2700 tons a year from its South African rare earth mine in two years' time, company executives said yesterday.
When Steenkampskraal mine, 400km northwest of Cape Town, cranks up again - it was officially closed in 1965 - it will make Great Western one of the few non-Chinese firms mining and processing rare earth minerals.
"Not only will we be one of the very few integrated rare earth producers in the world, we will be one of the first to produce the critical heavy rare earths," chief executive Jim Engdahl told the mining indaba in Cape Town.
Rare earths, which are used in smartphones and hybrid cars, as well as in the aerospace industry, abound in the high-grade ore at Steenkampskraal, said Engdahl.
"As a result of the grade, it will produce more heavy rare earth per tonne than any other known deposit in the world today," he said.
China produces over 95percent of the world's rare earths, triggering global concerns about the Asian economic powerhouse dominating production, especially after recent cuts to export quotas sent prices of individual oxides soaring.
Engdahl said South Africa, already the world's top platinum and a major gold producer, could emerge as a global leader in rare earth exports, driven by Chinese demand for the minerals.
"The big opportunity here that people haven't recognised is that China will become a net importer by 2014-15," he said.
Great Western is spending R300million rehabilitating Steenkampskraal after its closure nearly 50 years ago because of a lack of profitability.
But the site has about 30000 tons of known rare earth deposits, enough for 10 years' production at a planned output rate of less than 3000 tons a year.
Further exploration is planned at Steenkampskraal and other sites in South Africa in a bid to boost annual production to 5000 tons, Engdahl said.
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