Alicia Dowton

Mining and Commodities

Namibia Implements Ban on Unprocessed Lithium and Critical Mineral Exports

The Namibian Cabinet has given its approval to a proposal submitted by Mines and Energy Minister Tom Alweendo to prohibit the export of unprocessed lithium and other critical minerals. The decision, announced earlier this week, aims to retain more value from these resources by encouraging local processing before export. Minister Alweendo will have the discretion to allow the export of small quantities of the specified minerals.

Namibia follows in the footsteps of Zimbabwe, which previously banned the export of raw lithium to combat smuggling and promote local processing. This move reflects a growing determination among African countries to benefit economically by not only mining but also processing their resources, a practice known as beneficiation.

The rising demand for lithium, driven by the increasing shift toward electric vehicles and proposed bans on fossil-fuel cars, has led to soaring prices and demand. China, the leading lithium refiner and producer globally, currently dominates the supply chain. However, Western governments and international companies see Africa's lithium reserves as an opportunity to challenge China's dominance.

Lithium's value is projected to reach N$13.9 billion by 2025, providing a significant boost to Namibia's export earnings and revenue. Research firm Simonis Storm predicts that in an extreme case, lithium could contribute N$4.6 billion in revenue to the government, and in a conservative case, N$1.7 billion. This anticipated revenue surpasses that of all other commodity mining operations in Namibia.

In November of the previous year, Namibia signed an agreement with the European Union, securing the trade bloc's access to the country's rare earth metals to support the global transition to green energy. Additionally, Germany's Chancellor Olaf Scholz announced in April that Germany is willing to assist Namibia and other nations with abundant lithium reserves in establishing local lithium processing infrastructure.

Written by Alicia Dowton
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Source : The Brief - Click Here >>>