Mercuria eyes equity in African assets, new metals boss says
“You will see us very present in Africa and putting our money where our mouth is in respect of the Copperbelt,” Kostas Bintas said.
Namibia is pushing ahead with plans to seek more value from the metals and other resources it produces, despite criticism the policy will deter foreign investors.
The southern African nation last week banned exports of unprocessed lithium and other critical minerals used in clean-energy technologies. Mines and Energy Minister Tom Alweendo defended Namibia’s policy of adding value, saying a stronger industrial base would enhance the country’s appeal to investors while creating jobs.
“Without some of these minerals being processed on our continent, in our countries, there is no way we are going to industrialize,” Alweendo said in an interview in his office in Namibia’s capital, Windhoek. “We need to get more out of our resources.”
Resource nationalism is strengthening across the world as developing countries seek a greater share of the profits from soaring commodity prices, while addressing historic inequities in the wealth flows from mining. In Chile — the No. 2 lithium producer — President Gabriel Boric is looking for a bigger share of the mining windfall to fund schools and hospitals. Mexican President Andrés Manuel López Obrador declared lithium too strategic for private investors.
Namibia has significant deposits of lithium, a battery metal that’s pivotal to the electric-vehicle revolution, as well as rare earth minerals such as dysprosium and terbium used in magnets and wind turbines. The country’s lithium industry could be worth close to $1 billion a year, according to Namibian wealth manager Simonis Storm Securities. Output will only start to ramp up from 2025.
The move by Namibia follows a decision in December by neighboring Zimbabwe to ban the export of lithium ore, and allow only concentrates to be shipped. Zimbabwe wants to promote local production of battery-grade lithium and is considering taxing exports of concentrate.
Africa needs to be proactive in maximizing its economic potential, after other nations generated the greatest benefits from its resources, the minister said. While focusing on its goal of processing ore inside the country, Alweendo said Namibia will be flexible in allowing smaller quantities of the critical minerals to be exported without value addition taking place.
Nations from the US to China are rushing to secure supplies of lithium as the battle for strategic green metals intensifies.
Last month, the minister said Namibia was considering taking minority stakes in mining and petroleum production companies. The move would affect future projects rather than existing contracts.
The arid southwest African nation is one of the continent’s biggest producers of diamonds and the No. 1 uranium miner. French energy giant TotalEnergies SE discovered oil offshore last year.
(By Kaula Nhongo)
Comments