Erasmus Shivolo
The global energy sector is quickly transforming from fossil-based systems to clean energy sources such as solar, wind, hydroelectric, geothermal, green hydrogen, etc.
The trends towards greener and decarbonized value chains towards net-zero emissions by 2050 have triggered global interest in the exploration, mining, and processing of critical minerals.
These minerals have applications in a wide range of high-tech devices for personal and commercial use, such as wind turbines, solar panels, electric vehicles, smartphones and tablets, and other technologies.
Critical minerals are defined relative to a country’s geological and natural endowments, national concerns, economic and strategic interests, and priorities, and sometimes to safeguard domestic security issues. There is, therefore, no global definition.
Namibia has not officially defined which mineral commodities are critical. However, like many other countries, Namibia seeks to capitalize on global trends towards greener and decarbonized value chains, which have triggered global interest in mining and processing critical minerals.
There are three Mining Licenses granted for lithium. Although none is fully operational, they are all at advanced stages towards full development. Several discoveries have been made, and numerous exploration projects target lithium.
There are no operational mines for cobalt in Namibia. Neither are there any Mining licences issued for cobalt yet. However, some advanced exploration projects exist in the upper northwest and central northwestern part of Namibia.
Two mining licenses for graphite expire in 2042 and 2025, respectively. One is on care and maintenance, and the other is in development. There are also exploration projects in the Erongo and //Karas regions.
There are no operating mines for REE/Metals in Namibia.
The Lofdal (Khorixas) project is the only REE deposit currently under Mining License but not yet operational. There are several exploration projects, including one offshore.
Five mining licenses have been issued for tin and tantalum: one is not yet operational, three are operational, one is not operational, and the fifth is pending license renewal.
Additionally, several active exploration projects exist in the pegmatites in Southern Namibia and central and northwest central Namibia.
Otjosondu Mine is the only manganese mine operating in Namibia (ML145, valid until 2037). Several exploration licences have been granted for manganese and other base metals.
Leverage our geological and economic potential as a source of critical minerals and aim to play a prominent role in international markets. Through the EU-NAM Partnership, a national essential minerals strategy is to be developed, a detailed assessment of the critical mineral resources is envisioned, as well as the availability of reliable, consistent statistical information in relation to critical raw materials to inform strategic partnerships on the supply and development of critical minerals. A roadmap is at an advanced stage.
Japan is particularly interested in REE research, development, and value add in Namibia.
The Ministry is in the process of activating the provision of the mineral agreement for the State to enter into agreements with mineral rights holders with mutually beneficial terms and conditions (Section 49 of the Act).
The public voice for the State to participate in its mineral resources as a shareholder in Mining Companies is getting louder. The Ministry is working on a provision in the law for a certain percentage of mandatory government ownership in all mineral licences (critical minerals in particular).
To create an environment conducive to local value addition, the cabinet prohibited exporting the following critical minerals in unprocessed form: lithium, cobalt, manganese, graphite, and rare earth elements.
This is aligned to the Mineral Beneficiation Strategy (2021). Modalities to apply this cabinet directive are being worked out.
The country’s good rating in terms of governance, regulatory framework, sound infrastructure and political stability continues to draw investor interest in doing business in the Namibian minerals sector.
As a country, we strive to remain an attractive investment destination while ensuring maximum benefits for our local economy.
Mining project developers must consider the highest social, economic, governance and environmental standards to safeguard the local communities.
Local value addition and manufacturing remain the ultimate goal.
*Erasmus Shivolo is the deputy executive director of the Ministry of Mines and Energy
