Japanese partners Japan Organisation for Metals and Energy Security (JOGMEC) and Toyota Tsusho Corporation have established a new joint venture company to hold their 50% participating interest in Namibia’s Lofdal Heavy Rare Earth Project while securing up to C$47.668 million (about N$620 million) to fund the project through its next phase of development ahead of a final investment decision.
The newly incorporated TJ Namibia Rare Earths Corporation (TJNREC) has been created as a special-purpose company jointly owned by JOGMEC and Toyota Tsusho to hold their interests in the Lofdal Project under the joint venture with Namibia Critical Metals.
The establishment of TJNREC coincides with the completion of JOGMEC’s previously announced C$23 million earn-in commitment, which included funding approximately C$11 million for the expanded Definitive Feasibility Study (DFS) approved on 10 July 2026.
With the earn-in complete, TJNREC will acquire a 50% participating interest in the Lofdal Project, subject to approval by the TSX Venture Exchange and the shareholders of Namibia Critical Metals.
Alongside the formation of the new company, JOGMEC announced it has committed to invest up to C$47.668 million (approximately ¥5.5 billion) into TJNREC.
An initial investment was made on 23 July 2026, providing the newly established company with funding to advance Lofdal by completing the Definitive Feasibility Study and moving towards a Final Investment Decision (FID).
The investment marks the beginning of a new funding phase for the project. Under the joint venture agreement, all approved expenditure after completion of the earn-in will be treated as Pre-Final Investment Decision Capital Funding, allowing development work to continue without diluting Namibia Critical Metals’ ownership interest.
The funding is also non-interest-bearing until a final investment decision is made, reducing financing risk while supporting the completion of the Definitive Feasibility Study, environmental permitting, detailed engineering, long-lead procurement, and other approved pre-development activities.
Namibia Critical Metals President and Chief Executive Officer Darrin Campbell described the announcement as the culmination of six years of partnership with JOGMEC and the beginning of a new phase in the project’s development.
“Today’s announcement represents the culmination of six years of partnership with JOGMEC and marks the beginning of an exciting new chapter for the Lofdal Project. JOGMEC has now completed its C$23 million earn-in, Toyota Tsusho has formally joined the partnership, and TJ Namibia Rare Earths Corporation has been established to finance the Project through Definitive Feasibility and toward development,” Campbell said.
He said JOGMEC’s decision to invest up to C$47.668 million into TJNREC demonstrates the depth of the partners’ long-term commitment to the project and provides another endorsement of Lofdal’s strategic importance to global critical mineral supply chains.
Campbell added that the transition to Pre-FID Capital Funding is equally significant because it enables the project to continue advancing without dilution to Namibia Critical Metals’ ownership and without interest accruing before a final investment decision.
Lofdal is regarded as one of the world’s few advanced-stage heavy rare earth projects with significant concentrations of dysprosium, terbium and yttrium, rare earth elements used in permanent magnets for electric vehicles, wind turbines, robotics, defence systems and advanced electronics.
The project is currently progressing through a fully funded Definitive Feasibility Study, including pilot-scale metallurgical programmes, mineral separation test work, detailed engineering, environmental permitting and mine development planning.
The formation of TJNREC also formalises Toyota Tsusho’s participation alongside JOGMEC in the joint venture, strengthening the partners’ long-term commitment to the project as they work towards a construction decision while supporting the development of diversified global supply chains for heavy rare earth elements.
