Namibia reported to be planning critical minerals export restrictions
The reputation of the southern African country of Namibia is teetering on the back of reports that the government is considering blocking the export of a range of unprocessed critical minerals.
Just over a week after the government declared as “disappointing” media reports it was planning to acquire interests in mining and petroleum projects, the global resource sector is now viewing Namibia with questioning eyes.
According to local reports, the government is pushing to have lithium, rare earth elements, cobalt and some other critical minerals processed in country.
Adding to the confusion are suggestions that the government will potentially allow small quantities of critical minerals to be sent overseas for “research purposes”.
There is also confusion over when the proposed bans will come into being.
According to a statement attributed to the Namibian information ministry, the cabinet has already approved the prohibition of the export of certain unprocessed critical minerals.
No nationalisation claim
Last week the Government declared it has no intention to seize any stake from existing mineral or petroleum licence holders and “remains committed to upholding the sanctity of contract.”
However, the Ministry did not completely play down perceptions it may acquire mining and petroleum interests in the future, suggesting that it is the right of its people to be able to participate in these industries.
“The Ministry would, however, like to inform our stakeholders that the Namibian people have a legitimate expectation of having a share of ownership in the exploration and mining of our countries’ natural resources,” the Ministry of Mines and Energy declared.
Onshore REE development plans
Best known as one of the world’s leading uranium producers, Namibia is also home to significant rare earth and lithium resources.
Canadian firm Namibia Critical Metals (TSXV: NMI, OTC: NMREF) recently confirmed it had entered into a Memorandum of Understanding (MoU) to conduct a feasibility study for a rare earth separation plant in Namibia and entered into a partnership with other local rare earth miners.
A recent preliminary economic assessment (PEA) of the company’s expanded Lofdal project has forecast annual production of about 2,000 tonnes of mixed rare earth oxides (MREO) over 16 years containing an average of about 117 tonnes dysprosium oxide and 17.5 tonnes terbium oxide.
The company also revealed it is joining with two other advanced rare earth project developers in Namibia to jointly embark on a feasibility study for a separation plant in the country.
Other parties in the joint collaboration are E-Tech Resources (lTSXV: REE), which is exploring the Eureka monazite deposit in central Namibia and Ondoto Rare Earth, a private Namibian company developing the high-grade Ondoto bastnaesite deposit in northern Namibia.
The three companies will participate in a joint venture known as the Rare Earth Alliance Namibia (REAN).