Column: Electric dreams turn into a nightmare for battery metals
A sector that was once racing to build new supply has been closing mines and deferring projects as low prices bite into the cost curve.
Namibia said less than half of the mining projects it has approved are in operation, prompting the government to take a tougher stance on issuing permits.
Just 68 of the 162 licenses approved by the southern African nation are active, Mines and Energy Minister Tom Alweendo said at a conference in Windhoek on Wednesday.
Namibia is the world’s third-largest uranium producer and is home to deposits of lithium as well as rare earth minerals such as dysprosium and terbium, used in magnets and wind turbines.
One of the most unequal nations in the world, it is seeking to better manage its resources to benefit residents and wants to seek more value from the metals and other resources it produces.
“We have become more stringent when considering mining license applications,” Alweendo said. “Henceforth, the terms and conditions of all new mining licenses shall be captured in a Mining Agreement that shall be negotiated between the Ministry and the holder of the license.”
Many of the licenses have been awarded to applicants lacking the necessary capabilities to fulfill their exploration commitments, Alweendo said. The government will now issue permits to companies meeting minimum work program requirements and demonstrating adequate financial and technical capabilities, the minister said.
Namibia received over 600 new applications for exploration licenses as of December, with an additional 400 submitted in 2024, he said.
(By Kaula Nhongo)
Comments