Namibia is taking significant steps to enhance its mineral beneficiation strategy.
The aim is to create much-needed local jobs, and increase the value derived from rich natural resources.
However, for the country to successfully implement this strategy and effectively process the minerals it mines, substantial investments in infrastructure are essential.
This means Namibia requires improvements in various sectors, particularly in water supply and transport logistics.
Last year, Cabinet resolved to prohibit the exportation of critical minerals in their raw form, including lithium, graphite, cobalt, manganese and rare earth elements.
This decision is part of a broader initiative to ensure more of the value generated from these resources remains within the country, fostering local economic growth.
A report by the International Energy Agency emphasises that building local skills and capacities, supported by enabling policies and laws, is crucial for this endeavour.
“Enhancing electricity supply is critical. Namibia has a wealth of renewable energy resources that could be harnessed to support its mining sector and reduce reliance on imported energy,” reads the report.
Currently, Namibia imports 100% of its fuel and a significant portion of its electricity, between 60% and 70%.
The agency warned that domestic electricity supply primarily comes from hydropower, which can be unreliable due to frequent droughts. The transition to renewable energy sources could not only diversify the electricity mix, but also provide a more stable and cost-effective energy supply for mining operations.
In 2023 alone, Namibia spent over US$1.8 billion on imported fossil fuels and electricity, highlighting the urgent need for local energy solutions.
Despite the Cabinet resolution, many of Namibia’s natural resources are still exported in raw or minimally-processed forms, which exacerbates joblessness.
International interest in Namibia’s mineral wealth is growing, particularly from the European Union (EU), which has expressed willingness already to support the establishment of a home-grown extractive, refining and recycling industry for raw materials.
This partnership could provide much-needed expertise and investment to help develop Namibia’s capabilities in mineral- processing.
“Mining companies have cited energy security as a key factor driving their adoption of renewable energy sources. The rising costs associated with imported energy have prompted many firms to seek more sustainable solutions,” the report added.
By investing in renewable energy infrastructure, Namibia can not only stabilise electricity prices, but also position itself as a competitive player in the global market for critical minerals.
While domestic plans for mineral beneficiation are ambitious, they are contingent upon overcoming significant infrastructure challenges.
Critics argue that without adequate manufacturing facilities and logistical support, the country’s mining and industrialisation aspirations may falter.