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Global demand for critical minerals is growing exponentially and Namibia is endowed with huge resources. Considering the global interest in Namibian minerals, the government is looking at ways to reap optimal benefits from it by mining those minerals differently and not in a conventional manner.
Global demand for critical minerals is growing exponentially and Namibia is endowed with huge resources. Considering the global interest in Namibian minerals, the government is looking at ways to reap optimal benefits from it by mining those minerals differently and not in a conventional manner.
Zimbabwe in December imposed a ban on raw lithium exports as a measure aimed at stopping the smuggling of lithium ore and motivating mines to process in the country. African countries are determined to retain more of the value of their resources than they have in the past, which means not just mining them but processing them before export, which economically is referred to as beneficiation/value addition.
As the auto industry shifts towards electric vehicles—spurred by proposed bans on fossil-fuel cars beginning at the end of the decade—lithium prices and demand have soared. China, the world’s top lithium refiner, and a leading producer dominate the supply chain, but Western governments and international companies are trying to challenge that and see Africa’s lithium reserves as an opportunity.
Namibia in November last year struck a deal with the EU which ensured the trade blocs access to the country’s rare earth metals to power the global transition to green energy.
Africa’s lithium production is set to rapidly increase this decade. From 40,000 tonnes this year, the continent will likely produce 497,000 tonnes in 2030, commodities trader Trafigura estimates, with the bulk of that coming from Zimbabwe. Prices for lithium more than doubled last year as demand from the electric vehicle industry outstripped supply.
The latest effort by African governments is far from the first time they have resolved to retain more of the value of their mineral wealth, which ultimately should boost tax revenue, encourage new businesses and add jobs.
Read Also:
https://trendsnafrica.com/nedbank-namibian-ho-receives-gbcsa-6-star-green-rating/
https://trendsnafrica.com/namibia-to-become-major-player-in-oil-and-green-energy-industries/
https://trendsnafrica.com/eif-mobilises-n3-billion-for-environmentally-sound-projects-in-namibia/
The global transition away from fossil fuels is giving a sense of urgency, although many obstacles remain, notably insufficient electricity supply. As companies and investors around the world focus on goals to reduce carbon emissions and increase supplies of the minerals that should help, companies and investors are reconsidering projects they may have previously overlooked.
