Xinfeng Investments under investigation in Namibia
The government of Namibia has launched investigation on Xinfeng Investments (Pty) Ltd. for alleged illegal mining in the lithium-rich Erongo region.
Ministry of Mines and Energy claims that Xinfeng, which operates under an exclusive prospecting license (EPL) via a joint venture with Orange River Exploration and Mining CC, exceeded the scope of its permit by engaging in unauthorized lithium extraction.
Accusations
The firm has been accused of an unannounced inspection in November which revealed mining activities at the site near Uis, despite the EPL being approved only for exploration. Reports indicate that these activities have caused environmental degradation and disturbances to ancestral graves, raising significant concerns among local communities.
Xinfeng’s management reportedly admitted during December meetings with the ministry that their operations went beyond the approved exploration scope. Ministry of Mines and Energy ordered an immediate halt to all mining operations and referred the matter to the police for further investigation.
Namibia holds one of Africa’s largest lithium resources, second only to the Democratic Republic of Congo, Mali, and Zimbabwe, according to the US Geological Survey. Lithium is critical for manufacturing batteries used in mobile phones and electric vehicles.
Amid rising global demand, Chinese companies have significantly increased investments in African lithium resources. According to S&P Global Commodity Insights, African lithium production is expected to grow over 30-fold from 2022 levels by 2027. This investigation highlights the challenges of balancing resource exploitation with regulatory compliance, environmental protection, and community engagement in the mining sector.
