Namibia Bans Export of Raw Minerals
On 8 June 2023, Namibian Deputy Minister of ICT Emma Theofelus announced, through a Cabinet resolution, that Namibia is banning the export of raw minerals. The list includes so-called #CriticalMinerals, such as Lithium, Cobalt, Manganese and Graphite, that go into the production of high-density batteries that power Electric Vehicles (#EV). Certain #RareEarths, such as #Dysprosium and #Terbium, which go into the manufacturing of strong magnets used in wind turbines, are also subject to the ban.
It is worth recalling that Namibia signed a supply agreement with the EU as part of the plan to reduce its dependence on China for #CriticalMinerals. Observers point out that the decision may be related to the controversy surrounding Xinfeng Investments, which is involved in Lithium exploration in the Erongo region. It is alleged that large quantities of minerals are being shipped out of the country under the guise of sending samples for testing, thus evading taxes and royalties.
In December 2022, Zimbabwe took a similar decision to ban lithium ore exports. The government of Zimbabwe is encouraging miners to go for more Local Value Addition (#LVA). Initially, miners will be required to process to concentrate, but eventually, Zimbabwe would like to produce lithium batteries locally.
Namibia is among the top global producers of #uranium and diamonds, but its battery metals are attracting growing interest. Prospect Resources, Arcadia Minerals, Askari Metals, Celsius Resources, Namibia Critical Metals, Xinfeng Investments, and Desert Lion Energy are some mining companies exploiting #CriticalMinerals in Namibia.
In May 2023, newcomer Andrada Mining started lithium concentrate production in the form of high-purity petalite concentrate at the Nai-Nais mine. The concentrate can be further processed into lithium carbonate or lithium hydroxide. Andrada Mining CEO Anthony Viljoen stated: “We plan to increase pilot-scale production of lithium carbonate for testing with potential off-takers to achieve initial #lithium sales.”
As the fight against #ClimateChange steps up and the world moves to ban fossil-fuel-powered vehicles, Critical Minerals are becoming more and more in demand. African countries are thus trying to tap into the opportunity by moving up the Global Value Chain (#GVC) to maximize local benefits. Namibia is thus the latest but probably not the last country to come up with a ban on raw minerals following Zimbabwe and DR Congo.