The government of Namibia through the Ministry of Mines and Energy has issued a 25-year mining licence to Namibia Critical Metals for its Lofdal heavy rare earth dysprosium-terbium project.
The licence is valid through to 10 May 10 2046. Certain conditions of the mining license are that there be a minimum 20% representation of historically disadvantaged Namibians in the management structure, including the board of the applicant holding the license and that at least 5% of the voting shares in the applicant be held by historically disadvantaged Namibians.
Lofdal is a joint venture between the company and Japan Oil, Gas and Metals National Corporation (JOGMEC). The project’s deposit has the potential for significant production of dysprosium and terbium, the two most valuable heavy rare earths used in high powered magnets. It is being developed to provide a sustainable supply of heavy rare earths to Japan. Namibia Critical Metals has initiated the re-structuring of the management and shareholdings of its Namibian subsidiary to comply with these conditions.
“This is an incredibly important milestone and achievement for the Lofdal project, the company and for the Republic of Namibia. We have reached another significant value inflection point following closely on the heels of our mineral resource update announced earlier this year in May. With the previously announced receipt of the environmental clearance certificate for Lofdal on 30 June 2021, we now have a fully permitted mining project at Lofdal,” Darrin Campbell, president of Namibia Critical Metals stated.
Namibia Critical Metals holds a diversified portfolio of exploration and advanced stage projects in Namibia focused on the development of sustainable and ethical sources of metals for the battery, electric vehicle and associated industries. The two advanced stage projects in the portfolio are Lofdal and Epembe. The company also holds significant land positions in areas favourable for gold mineralisation.