Namibia: Valuing rare earth
Namibia is positioning itself as a credible alternative supplier of critical rare earth minerals. In a recently published analysis, Rihupisee Kavari and Shereef Martin, associates at Cliffe Dekker Hofmeyr Namibia, set out the global context.
According to the pair, rare earth elements have evolved from specialised industrial minerals into strategic inputs for the global energy transition. Although the term "rare earths" covers 17 elements, a smaller group of magnet rare earths is critical to the production of high-performance permanent magnets used in electric vehicles, wind turbines, industrial motors, robotics, consumer electronics, data centres, medical technologies, aerospace systems and defence applications.
"At the global level, rare earths have become a strategic resource class," they say, adding: "Dysprosium, terbium, neodymium, praseodymium and yttrium are no longer viewed merely as speciality minerals; they are increasingly treated as industrial security inputs."
Lofdal leads the way
Illustrating local momentum is the announcement made last month by Namibia Critical Metals (NCMI), which unveiled the next phase of its Lofdal Definitive Feasibility Study (DFS), including further value addition in Namibia.
In Halifax, Nova Scotia, the Canadian miner announced that the Lofdal Joint Management Committee had approved approximately C$11 million (more than N$129 million) in additional funding, "as Lofdal enters a major metallurgical execution phase supporting downstream rare earth processing in Namibia."
Darrin Campbell, president and chief executive of Namibia Critical Metals, said the announcement "marks the commencement of the next major execution phase of the Lofdal DFS for the expanded Project Lofdal 2B-4, and reflects the continued commitment of NCMI, JOGMEC and Toyota Tsusho to advancing one of the world's most strategically important heavy rare earth projects."
One of few
The Lofdal Heavy Rare Earth Project is one of the few advanced heavy rare earth projects globally, and among the largest known undeveloped sources of dysprosium, terbium and yttrium, according to the company.
The project is being advanced through a strategic partnership with the Japan Organization for Metals and Energy Security (JOGMEC) and Toyota Tsusho, the trading and business development arm of the Toyota Group, to establish secure and diversified supply chains for critical rare earth materials.
NCMI owns a 95% interest in the Lofdal project, with the remaining 5% held for the benefit of historically disadvantaged Namibians.
Under the terms of the JOGMEC agreement, JOGMEC provides C$3 million in Term 1 and C$7 million in Term 2 to earn a 40% interest in the Lofdal project. Term 3 calls for a further C$13 million to earn an additional 10% interest. Total funding to date stands at C$19,973,000 of the C$23 million earn-in requirement needed to reach a 50% interest.
Advancing the value chain
The company also announced that it had awarded its first major metallurgical and geometallurgical contracts to SGS Canada.
According to the company, the work will validate the complete processing flowsheet from run-of-mine ore through to the production of separate light and heavy rare earth carbonate products, while generating the engineering and operating data required to support updated plant design and project financing.
A key objective, according to NCMI, "is to demonstrate the production of higher-value intermediate rare earth products in Namibia".
"These products represent a significant advancement in value addition within Namibia and establish the technical foundation for evaluating future downstream processing opportunities in-country," the company said.
According to Campbell, the additional DFS funding enables a comprehensive metallurgical development programme that "will substantially de-risk the processing component of the project while generating the engineering data required for detailed design and project financing".
Broadmind also progressing
Broadmind Mining is a Namibian-owned company headed by executive chairman Sidney Martin, which is developing the Eisenberg Carbonatite Rare Earth Project near Kalkfeld in the Otjozondjupa Region.
The project is notable for the scale of its inferred mineral resource and its potential to support an integrated Namibian rare earth mining, processing and beneficiation operation.
Available technical information indicates that the Eisenberg deposit hosts rare earth mineralisation associated with an iron-rich carbonatite system.
Broadmind has obtained an environmental clearance certificate, completed a preliminary economic assessment and produced a technical report. The company is also progressing its pre-feasibility study.
Broadmind envisages mining, producing and refining rare earth elements in Namibia. Environmental documentation indicates that it has applied for a mining licence within EPL 6688 for rare earth mining.
