Frontier Rare Earths, which is developing the Zandkopsdrift magnet rare earths and battery grade manganese project in South Africa, recently signed a Technology Supply Agreement with Carester SAS (Carester), one of the leading western rare earths separation specialists, and an investment of US$20m from South Africa’s Industrial Development Corporation to finance a Definitive Feasibility Study (DFS), with first production targeted for 2030.
Highlights
- Strategic technology supply and offtake agreements signed with leading rare earth specialist Carester
- Carester’s proprietary rare earth solvent extraction technology to be deployed at Zandkopsdrift
- Will enable production of high-purity NdPr oxide and mixed heavy rare earth carbonate (MHREC) at Zandkopsdrift
- Includes 7-year offtake for MHREC, which will be processed at Carester’s Lacq facility in France
- Updated Prefeasibility Study (PFS) on Zandkopsdrift project completed in 2025
- Expected to be lowest-cost producer of battery-grade manganese globally and lowest-cost producer of magnet rare earths outside China
- Battery-grade manganese by-product revenue expected to cover ~90% of rare earth production costs, with neodymium-equivalent net production cost of <US$15/kg, compared to current market price of >$100/kg
- Post-tax NPV10%: US$2.0bn; post-tax IRR (ungeared): 28%; post-tax IRR (50% geared): 34%; average annual revenue: US$727m; average operating margin: 72%
- Long-life, magnet-focused production profile
- Expected average annual production (first 25 years): ~3,038 tpa NdPr oxide, and 114 tpa of Dy oxide and 25 tpa of Tb oxide separated by Carester
- Magnet rare earths (Nd, Pr, Dy, Tb) represent ~94% of contained rare earth value
- Proven and Probable Reserves support >45-year mine life at planned production rates
- US$20 million strategic equity investment from Industrial Development Corporation of South Africa
- Investment to fund DFS and corporate development activities
- Conditions precedent satisfied in September 2025, with DFS under way and completion scheduled for H1 2027
- IDC holds an option for offtake up to 10% of production at prevailing market prices, subject to being used in further downstream processing in South Africa
- Zandkopsdrift designated as EU Strategic Project; multiple potential EU funding pathways under evaluation
- Designated a Strategic Project under the EU’s Critical Raw Materials Act (June 2025)
- Aligned with objectives of EU–South Africa Clean Trade and Investment Partnership (signed November 2025) and the EU’s RESourceEU Action Plan financing (announced December 2025)
- First production targeted for 2030
- Zandkopsdrift project fully permitted with Mining Right and Environmental Authorisation in place
- Infrastructure planning (roads, power, process water) already completed, supporting a smooth transition from DFS into mine development
Philip Kenny, Chairman of Frontier, commented “We are delighted to have signed these strategic agreements with Carester, which will result in our flagship Zandkopsdrift project being the first project in Africa to deploy Carester’s industry-leading rare earths extraction technology. We are also very pleased to have secured a US$20m strategic investment from the IDC to fund a DFS on Zandkopsdrift.
With Zandkopsdrift expected to be the lowest cost producer of magnet rare earths outside China after taking into account net revenue credits from a battery grade manganese byproduct, for which it will be the lowest cost producer in the world, we believe that Frontier is now well positioned to make a meaningful contribution to the diversification of western world’s rare earths and battery raw material supply chains.”
Frédéric Carencotte, president of Carester, commented “This 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.”
Rian Coetzee, Divisional Executive: Industry Planning and Project Development of the IDC, commented “The IDC’s investment in Frontier reflects our mandate to support projects that advance Southern Africa’s industrialisation and critical minerals strategy. 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.”
