After resolving to prohibit the exportation of Namibia’s critical minerals in raw form to create more local jobs and local value last year, Cabinet now endorses a maximum quantity of 1 000kg for mineral analysis per annum per exporter or producer.
This submission was made by the mines and energy ministry last week, and applies to materials such as unprocessed crushed lithium, graphite, cobalt, manganese and rare earth elements.
At its 12th decision-making meeting on 23 July, Cabinet further endorsed a maximum of up to 20 000 metric tonnes for the purpose of plant design parameters.
Local value-addition remains a major challenge for Namibia, where most of its natural resources are still being exported in raw or minimally-processed forms. This, pundits argue, continues to create sought-after jobs in other countries.
However, Namibia has been receiving offers to help establish a mineral beneficiation sector during increased global competition for rare earth minerals, driven by an expanding electric vehicle (EV) industry.
The European Union (EU) last year confirmed its willingness to support Namibia in further developing a home-grown extractive, refining and recycling industry for raw materials.
Mines and energy minister Tom Alweendo has in the past warned international media that Namibia would soon insist all lithium mined in the country has to be processed domestically.
Mining analysts believe Africa’s lithium production is set to rapidly increase this decade – from 40 000 metric tonnes this year to 497 000 tonnes in 2030.
This is as lithium prices more than doubled last year, as demand from the EV industry outstripped supply.
Last year, government stopped a Chinese company, Xinfeng Investments, from exporting lithium ore for violating Namibia’s export ban on critical raw mineral exports.
Xinfeng insisted it exported 75 000 metric tonnes of lithium ore to its Chinese headquarters for “tests” that would determine the design of a lithium-processing plant in Namibia.
Power supply
Moreover, the recent Cabinet briefing approved the selection of the public funding model as the preferred implementation model for the bi-national Baynes Hydro Power project, including the Baynes regulating dam.
Baynes Hydroelectric Power Station is a planned 600-megawatt hydroelectric power plant, located on the Kunene River in northwest Namibia near the Angolan border.
“The Cabinet directed the finance ministry to commence with the mobilisation for funding for Namibia’s obligation for the construction of the Baynes regulating dam and Baynes main dam, including sources of additional funding for the construction of the road access to the Baynes project site,” reads the statement.
Once completed, the Baynes station is expected to help meet growing electricity demand in both Namibia and Angola.
The Baynes Hydropower Project was initiated after the Firm Power Contract with Eskom expired in 2005, and could not be renewed due to a critical power shortage faced in South Africa at the time.
Imports became significantly more expensive, especially during peak hours.
Consequently, both the Angolan and Namibian governments agreed to study the Baynes option further.
The project is worth an estimated US$1.2 billion, with construction expected to take about six years.
Cabinet also approved, in principle, the signing of the implementation agreement, and mandated the mines minister to sign the agreement on behalf of the Namibian government.
-mndjavera@nepc.com.na