Luxembourg-based Frontier Rare Earths has signed a technology supply agreement with rare earth separation specialist company Carester to work with Frontier on developing the Zandkopsdrift rare earths and manganese project, in South Africa.

Additionally, South Africa’s Industrial Development Corporation (IDC) has provided an investment of $20-million to finance a definitive feasibility study (DFS) on the project.

Carester owns proprietary rare earth solvent extraction technology that will enable the production of high-purity neodymium/praseodymium (NdPr) oxide, as well as mixed heavy rare earth carbonate (MHREC) at Zandkopsdrift.

The agreement between the companies includes a seven-year offtake arrangement for MHREC, which will be processed at Carester’s Lacq facility, in France.

Carester president Frédéric Carencotte says the partnership marks another step in Carester’s strong commitment to supporting the development of a secure and sustainable European rare earth industry.

“The offtake agreement ensures long-term feedstock security for our French plant and demonstrates how close industrial cooperation can reinforce the critical raw materials value chain.”

In turn, IDC industry planning and project development executive Rian Coetzee says the IDC’s investment in Frontier reflects the organisation’s mandate to support projects that advance Southern Africa’s industrialisation and critical minerals strategy.

The investment has afforded Frontier the option for the IDC to offtake up to 10% of production at prevailing market prices, subject to being used in further downstream processing in South Africa.

Coetzee adds that Zandkopsdrift is a high-quality project with strong fundamentals and the potential to support downstream beneficiation, job creation and long-term economic value. “Our participation as an equity partner aligns the project with national development priorities while positioning it for sustainable growth.”

Meanwhile, the project’s DFS is under way and due to be completed in the first half of 2027.

An updated prefeasibility on the project completed last year envisions first production from 2030 and a 25-year mine life. The study earmarks production of 3 038 t/y of NdPr oxide, 114 t/y of dysprosium oxide and 25 t/y of terbium oxide.

Zandkopsdrift has proven and probable reserves to support a 45-year mine life.

The project currently has an after-tax net present value estimation of $2-billion, an internal rate of return of 34% (ungeared) and 50% (geared) and an estimated yearly revenue potential of $727-million.

Zandkopsdrift is expected to be among the lowest-cost production sites of battery-grade manganese globally, as well as a lower-cost producer of magnet rare earths outside China.

The main changes in project scope for the DFS compared with the prior study are the incorporation of Carester’s technology to produce oxides and carbonate directly from rare earths water leaching solutions at the mine site, and other support provided by Carester.

Additionally, the manganese sector of the flowsheet will be modified to produce both battery-grade high-purity manganese sulphate monohydrate and battery-grade manganese tetroxide.

The project is currently fully permitted with a mining right and environmental authorisation in place. Frontier has completed infrastructure planning to support a smooth transition from the DFS stage into mine development.