#South Africa #Rare Earths #Zandkopsdrift #Carester

Strategic Partnership in the Rare Earths Sector

Frontier Rare Earths Limited, a prominent player in the rare earth industry, has made significant strides with the recent signing of a strategic technology supply agreement with Carester SAS. This partnership aims to enhance the development of the Zandkopsdrift project, a magnet rare earths and battery-grade manganese initiative located in South Africa.

Investment Boost

In a further boost to the project, Frontier secured a $20 million equity investment from the Industrial Development Corporation (IDC) of South Africa. This funding is earmarked for financing a Definitive Feasibility Study (DFS), which is crucial for identifying the project's viability and speeding up the timeline toward production, targeted for 2030.

Carester's Role

Carester has developed proprietary rare earth solvent extraction technologies that will be crucial for the successful operation of Zandkopsdrift. The agreement includes a seven-year offtake for mixed heavy rare earth carbonate (MHREC), which will be processed at Carester's facility in Lacq, France. This collaboration enables Frontier to ensure a high-purity end product that meets market demands.

Economic Potential

The updated Prefeasibility Study (PFS) for the Zandkopsdrift project, completed in 2025, indicates that Frontier is on track to become one of the lowest-cost producers of battery-grade manganese globally while also producing magnet rare earth elements at competitive rates. Analysts project that revenue from the manganese by-product could cover approximately 90% of the production costs for rare earth elements, establishing a neodymium-equivalent net production cost of less than $15 per kilogram, notably lower than the current market price that exceeds $100.

The economic analysis shows a post-tax net present value (NPV) of $2 billion and an impressive internal rate of return (IRR) of 28% when ungeared, and 34% when partially financed with debt. The average annual revenue is projected at $727 million, with a striking average operating margin of 72%.

Longevity and Resource Potential

The Zandkopsdrift project is characterized by a long mine life, with proven and probable reserves that support over 45 years of mining at planned production levels. Initial projections anticipate an average output of approximately 3,038 tons per annum (tpa) of NdPr oxide, alongside 114 tpa of dysprosium oxide and 25 tpa of terbium oxide separated through Carester's technology. The magnet rare earths make up about 94% of the total value of contained rare earth elements.

Strategic Designation and Future Funding

Recognizing the project's significance, the Zandkopsdrift has been designated as an EU Strategic Project under the Critical Raw Materials Act. This designation aligns with the EU's clean trade objectives, particularly as outlined in partnerships established with South Africa in 2025. Frontier is exploring various funding avenues within the EU framework.

With all critical permits in place, including Mining Right and Environmental Authorization, Frontier Rare Earths is poised to transition smoothly from the DFS phase into actual mine development. This preparation encompasses road, power, and processing water infrastructure, ensuring that the timeline to production remains on track.

Conclusion

The collaboration between Frontier Rare Earths and Carester, combined with the financial backing from the IDC, marks a promising chapter in the journey toward navigating a sustainable future in rare earth production. As the demand for responsible sourcing of materials increases, this strategic partnership underscores the industry's potential to leverage advanced technology to achieve economic and environmental efficiencies. Expect to hear more from Frontier as they continue down this path towards a greener and more productive resource sector.