Namibia Critical Metals will require approximately US$347.9 million, or about N$6.34 billion, to build the Lofdal Heavy Rare Earths Mine under the newly released Pre-Feasibility Study (PFS) for the Lofdal 2B-4 development in Kunene.
The study, released by Namibia Critical Metals Inc. on the TSX-V and OTCQB, estimates total capital costs of US$347,928,970 (approximately N$6.34 billion), including a US$57.36 million (about N$1.05 billion) contingency, with US$273.4 million (around N$4.98 billion) in pre-production capital required before first output.
The capital build comprises US$181.57 million (approximately N$3.31 billion) for processing infrastructure, US$58.75 million (about N$1.07 billion) for supporting facilities, US$27.62 million (around N$504 million) in initial mining capital, US$21.59 million (roughly N$394 million) for tailings, and US$1.04 million (about N$19 million) in mine-site closure provisions. In total, these components represent a combined capital allocation of US$290.57 million, equivalent to roughly N$5.30 billion.
Operating expenditure over the 13-year mine life is estimated at US$1.68 billion, or roughly N$30.6 billion, translating to US$96 per tonne mined, US$63.75 per tonne processed, and US$24.78 per kilogram TREO in mining cost alone.
Processing accounts for US$56.98 per tonne mined, while G&A sits at US$1.70 per tonne and US$1.13 per tonne processed.
Royalties and separation costs total US$295.38 million under Base Case assumptions and US$364.74 million under the Divergent Case.
The PFS outlines two forward price environments — a conservative Base Case and a geopolitically driven Divergent Case — both of which position Lofdal among the most strategically significant dysprosium-terbium-yttrium projects globally, particularly for Japan, with whom the project is being developed through joint venture partner JOGMEC.
The Base Case delivers a pre-tax NPV of US$389.2 million (N$7.09 billion) and after-tax NPV of US$275.5 million (N$5.02 billion).
Under the Divergent Case, assuming tighter ex-China supply dynamics and higher pricing, pre-tax NPV rises to US$1.245 billion (N$22.7 billion) with after-tax NPV at US$747.9 million (N$13.6 billion).
The resulting IRR ranges from 21.7 per cent pre-tax (19 per cent post-tax) in the Base Case to 44.1 per cent pre-tax (34.8 per cent post-tax) in the Divergent Case, with capital payback in 4.2 years or 2.75 years, respectively.
Average annual production is projected at 1,478 tonnes TREO excluding lanthanum and cerium, including 119 tonnes dysprosium, 17.8 tonnes terbium and 841 tonnes yttrium.
Life-of-mine cash flow totals US$709.6 million pre-tax and US$513.1 million after-tax in the Base Case, increasing to US$2.027 billion pre-tax and US$1.242 billion after-tax in the Divergent Case.
Pricing assumptions used in the study reflect the split global rare earths market: dysprosium oxide at US$663/kg (Base Case), rising to US$855/kg in the Divergent Case; terbium oxide at US$2,880/kg, rising to US$3,712/kg, and yttrium oxide from US$60/kg to US$130/kg.
Basket pricing averages US$158/kg excluding La/Ce in the Base Case and US$230/kg in the Divergent Case. Yttrium accounts for roughly 40-50% of the recovered oxides.
The mine plan supports 32 million tonnes of Proven and Probable Reserves grading 0.176 per cent TREO after dilution, from combined Area 4 and Area 2B pits situated within the 450-km northwest Lofdal HREE district.
Measured and indicated resources total 58.5 million tonnes at 0.16 per cent TREO containing 4,503 tonnes dysprosium oxide, 692 tonnes terbium oxide, and 93,730 tonnes total rare earth oxide, including yttrium.
Mining will be undertaken using contractors at a stripping ratio of 6.8:1 and targeted ROM feed of 3.01 million tonnes per annum.
The 13-year schedule allows for open-pit extraction at an average of 20 million tonnes per year, with the potential for extended life through Area 5 satellite pit development and additional drilling at 2B North.
