Namibia ink deal with EU on rare earth minerals

The government Namibia has inked a provisional agreement with European Union for rare minerals. Namibia’s Mines and energy minister Tom Alweendo announced the deal includes conditions, materials and mode of processing the minerals that will ensure the country benefit.

The move is due to the massive demand on country’s rare earth metals. Mining in Namibia accounts for roughly 10% of the country’s GDP every year.  Historically, diamond mining has been the leading sub-sector of Namibia’s mining industry. The country is also the world’s fourth-largest producer of uranium oxide.  The nuclear industry continues to fuel the demand for uranium.

Significant reserves

Namibia is an up-and-coming source country for critical minerals, which are important for renewable energy technologies. The country pride itself in having significant reserves of rare earth minerals such as dysprosium and terbium needed for permanent magnets in the batteries of electric cars and wind turbines. As such, they are used power the global transition to green energy.

Given the are critical importance the rare earths play to the renewable energy sectors, the European Union intends to conduct geological projects to explore the resources.