Japan’s state-backed Japan Organisation for Metals and Energy Security has committed an additional C$3 million (about N$40 million) to advance the Lofdal heavy rare earths project in northwestern Namibia, tightening its grip on one of the country’s most strategic critical minerals.
The funding follows an amendment to the earn-in agreement with Namibia Critical Metals, which owns the Lofdal project.
The additional capital will be directed toward completing a Definitive Feasibility Study (DFS) for the Lofdal 2B-4 deposit, alongside a series of de-risking programmes to move the project closer to development.
The DFS is now targeted for completion in the second quarter of 2027, marking a critical milestone in determining the project’s commercial viability and financing pathway.
Under the revised agreement, JOGMEC will fund engineering work, mine optimisation, infrastructure planning and execution strategies, while also supporting further resource drilling at the planned Area 2B mine site and the nearby Area 5 prospect.
The additional funding comes with no dilution to Namibia Critical Metals, preserving the company’s equity position in the project.
Beyond the DFS, the amendment introduces a significant financing mechanism that could reshape the project’s development timeline.
JOGMEC has secured the option to provide pre-final investment decision (pre-FID) capital funding, which would be non-interest-bearing and non-dilutive. This allows early-stage development work to proceed without immediate financial strain on Namibia Critical Metals, while still giving the company the option to maintain its ownership stake by contributing its proportional share after a final investment decision.
Namibia Critical Metals president Darrin Campbell said the additional funding strengthens the project’s trajectory toward development.
“We are extremely pleased with the continued support of our JOGMEC partner and their willingness to increase funding to accelerate Lofdal through the next value inflection point,” Campbell said. “By increasing the earn-in commitment by C$3 million to complete a DFS, we can expand and de-risk the engineering work programme, advance execution planning, and position Lofdal for project financing and development decisions in a manner that aligns with Japanese industrial demand for secure, long-term heavy rare earth supply.”
The amendment does not alter the broader strategic framework of the joint venture, which is anchored on establishing Lofdal as a long-term, sustainable source of heavy rare earth elements for Japan’s industrial base. These elements, including dysprosium and terbium, are critical for high-performance magnets used in electric vehicles, wind turbines and advanced electronics.
Lofdal remains one of the few heavy rare earth projects outside China with advanced exploration work, placing Namibia at the centre of a growing geopolitical push to diversify global supply chains. The project has been under development for over a decade and is widely regarded as a potential cornerstone of Namibia’s critical minerals strategy.
The latest funding injection signals continued Japanese commitment to securing supply from Namibia and to accelerating the technical and financial groundwork required to bring the project into production.
With the DFS now fully funded and a potential pathway to early capital support in place, Lofdal is moving closer to becoming one of the country’s next major mining developments.
