Hightlights
- Namibia Critical Metals renews Environmental Clearance Certificate for Lofdal Project.
- Partnership with Japan Oil and Gas enhances project development.
- Significant advancements in pre-feasibility study and sustainable practices.
What is the Lofdal Heavy Rare Earth Project?
Lofdal (opens in a new tab) is the most advanced project in the Company portfolio with a 43-101 mineral resource estimate established in 2012 which was updated in 2021 and a Preliminary Economic Assessment (“PEA”) completed in 2014. In 2016 Namibia Rare Earths Inc. (predecessor company to NMI) completed an Environmental Impact Assessment and was granted an Environmental Clearance Certificate from the Ministry of Environment and Tourism in 2017.
In December 2020 the Company received a Notice of Preparedness to Grant Application for Mining License from the Namibia Ministry of Mines and Energy and Mining License ML 200 was subsequently granted in July 2021. ML200 is valid for a 25-year period through to May 10, 2046, and is issued to the Company’s 95% owned subsidiary, Namibia Rare Earths (Pty) Ltd. with the balance held by Philco One Hundred Ninety-Six (Pty) Ltd. (“Philco 196”), a company incorporated to fulfil the license requirement of a 5% shareholding of Historically Disadvantaged Namibian.
Deal with Japan Oil and Gas
On January 27, 2020, the Company announced that it had signed an agreement with Japan Oil, Gas and Metals National Corporation (opens in a new tab) (“JOGMEC“) to jointly explore, develop, exploit, refine and/or distribute mineral products from Lofdal. The agreement provides JOGMEC with the right to earn a 50% interest in the project by funding $20,000,000 in exploration and development expenditures under the following terms:
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Term |
Summary |
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Term 1 |
JOGMEC will fund $3,000,000 in exploration expenditures up to March 31, 2021. The first term funding amount is non-refundable and JOGMEC earns no interest in the Lofdal project. |
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Term 2 |
JOGMEC is entitled to elect to contribute an additional $7,000,000 in exploration expenditures from April 1, 2021 – March 31, 2024, to earn a 40% interest in the Lofdal project. |
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Term 3 |
JOGMEC is entitled to elect to contribute an additional $10,000,000 in exploration and development expenditures from April 1, 2024 – March 31, 2028, to earn an additional 10% interest in the Lofdal project. |
Once JOGMEC has completed and exercised its 50% earn-in and a feasibility study has been completed on the project, JOGMEC has the right to purchase an additional 1% interest in the project from the Company for $5,000,000 and thereafter to exclusively provide funding to develop the project subject to the Company’s interest in the Project not being diluted below 26%.
More on JOGMEC
JOGMEC is a Japanese government independent administrative agency which among other things seeks to secure stable resource supply for Japan. JOGMEC has a strong reputation as a long term, strategic partner in mineral projects globally. The mandated areas of responsibilities within JOGMEC relate to oil and natural gas, metals, coal and geothermal energy. JOGMEC facilitates opportunities with Japanese private companies to secure supply of natural resources for the benefit of the country’s economic development.
Rare earths are of critical importance to Japanese industrial interests and JOGMEC has extensive experience with all aspects of the sector. JOGMEC provided Lynas Corporation with US$250,000,000 in loans and equity in 2011 to ensure supplies of these crucial metals from the Mount Weld Project in Australia to Japanese industry.
Japan is the most important consumer of dysprosium outside of China. Adamas Intelligence estimates that from 2013 through 2017 China produced 98% of the global supply of dysprosium and was responsible for approximately 90% of global dysprosium oxide (or oxide equivalent) consumption each year. Japan was responsible for 9% of global consumption and other nations (including the United States) for 1%. With 2017 dysprosium production estimated at 1,500 tons, Japanese consumption is estimated at 160 tons per annum.
What’s the significance of renewal of an Environmental Clearance Certificate to commence mining activity on Mining License 200?
As reported by the company in a press release (opens in a new tab), this certificate permits the Company to carry out exploration, processing, and mining activities on its Lofdal tenement and is valid until September 2027.
What other news does the company present?
The Company announces significant progress in its Pre-Feasibility Study (PFS) for the expanded ‘Lofdal 2B-4’ project. The scope of the PFS has been broadened to include sorting test work using recently advanced XRF and XRT sorting technologies, which aim to upgrade lower-grade run-of-mine material.
Additionally, the Company is conducting trade-off studies on electricity supply, assessing various combinations of photovoltaic, battery, and diesel backup options, grid connection, and electricity generation from an on-site acid plant.
These studies are focused on optimizing a sustainable power supply for the mining operation. The PFS is expected to be completed by Q1 2025.
Darrin Campbell, (opens in a new tab) President of Namibia Critical Metals, commented: “We are very pleased to receive the environmental clearance certificate as the pre-feasibility study for the new large mine project Lofdal 2B-4 is near completion, which will be followed by increasing ground activities at Lofdal.
“I am also very excited about the opportunities we see with the significantly advanced sorting technologies which have recently improved due to the introduction of AI applications. These technologies may help to bring lower-grade material back into the processing stream.
“This is important from a sustainability point as the currently regarded ‘stockpile’ material below the cut-off point for the planned flotation plant makes up about a third of the mined mineralized material.”
Lofdal Project overview
Namibia Critical Metals Inc. is developing the Tier-1 Heavy Rare Earth Project, Lofdal, one of the world’s most significant deposits of dysprosium and terbium (opens in a new tab). These critical metals are essential for producing permanent magnets used in electric vehicles, wind turbines, and other advanced electronics.
The rising demand for such metals is driven by global energy and technology transformations. With growing concerns about the geopolitical risks of sourcing these metals, Namibia offers a stable and proven mining jurisdiction. The Lofdal Project is fully permitted with a 25-year Mining License and is operated under a Joint Venture agreement with the Japan Organization for Metals and Energy Security (JOGMEC).
Daniel
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