Namibia’s Ministry of Mines and Energy says its not backing down on its value-addition stance in the critical minerals sector, dismissing concerns that such a policy could deter foreign investment.
In July, the Cabinet approved a maximum export quantity of 1,000kg for mineral analyses per annum per exporter or producer and a maximum of 20,000 tonnes was set for plant design parameters on lithium ore, cobalt, manganese, graphite, and rare earth elements.
This follows the ban on the export of unprocessed critical metals in June 2023. Minister of Mines and Energy, Tom Alweendo, said the country is positioning itself as a key player in the supply chain.
A central component of this strategy involves increasing domestic processing and manufacturing to maximise economic benefits for Namibians.
“Namibia is a country endowed with some of the needed critical minerals and it must count for something. Our vision is to be a significant player in the supply chain of critical minerals in support of the global energy transition,” he said.
Alweendo added that the government had intensified its international efforts to promote Namibia as an attractive investment destination over the past two years.
He highlighted the success of these efforts, including the conclusion of several collaborative agreements, and said that these outreach initiatives would continue.
“Our efforts so far have yielded good results, and we were able to conclude various collaboration pacts. We will continue to intensify our global outreach,” he said.
Additionally, Alweendo expressed that the government would like to partner with like-minded countries to create a prosperous and competitive critical minerals sector that would benefit Namibian citizens.
He emphasised the goal of developing a comprehensive minerals industry, encompassing exploration, mining, processing, and manufacturing, which would generate employment opportunities across the value chain.
“We do recognise that achieving our vision of being a significant player in the critical minerals supply chain and to ensure that in-country value-addition takes place will be challenging,” he said.
Namibia joined Zimbabwe in demanding that all locally mined lithium be processed domestically. In December, Zimbabwe implemented a ban on raw lithium exports, aiming to prevent the smuggling of lithium ore and encourage local processing.
Lithium is expected to be in high demand from 2025, with its value projected to reach N$13.9 billion according to projections from Simonis Storm.
According to the research firm, this has the potential to boost Namibia’s export earnings and revenue, with lithium expected to contribute N$4.6 billion in revenue to the government in the extreme case and N$1.7 billion in the conservative case.-miningandenergy.com.na
