Alweendo to soon decide on lithium mine permit

Minister of mines and energy Tom Alweendo will make a decision in a week’s time on whether to activate, cancel or defer the operation of a contentious lithium licence, which has been haunted by allegations of corruption involving more than N$50 million last year.

Lithium’s role in electric vehicle battery production sparked a global rush to secure the resource, in which Namibia is also participating.

The Namibian reported last year that three government officials are linked to a controversial N$50-million lithium mining deal which enriched their friends and relatives through a mineral that powers the world’s green economy.

Alweendo subsequently blocked lithium permits last year, in essence stopping the exports of Chinese-owned Xinfeng Investments.

This decision has been met with various reactions.

Some believe Alweendo should uphold the ban to avoid the looting of natural resources by a clique of individuals.
Others, like Xinfeng, believes the ban is unfair and goes against Namibia’s foreign investment drive.

A mines ministry technical committee reportedly met this week to recommend the way forward on lithium mining.

Yesterday, ministry spokesperson Andreas Simon said the minister has full discretion to decide whether to activate, cancel or defer the licence, or impose a moratorium on all applications.

He said the ministry is working on a best practice model that would allow the government to better regulate all critical minerals.

“So, while we are doing that, we would definitely want to look at whether to implement a moratorium,” Simon said.

“But we don’t know yet whether the minister will take that decision. I think we are all on the edge here,” he said.

AGAINST

Mining activist Jimmy Araseb has been lobbying against lithium activities at Uis.

He has led a delegation to the mines ministry with a petition protesting being excluded from mining activities at the town.
The meeting was attended by Alweendo and the mines and environment commissioners.

Areseb yesterday told Desert Radio Alweendo clashed with the commissioners over how Longfire Investment applied for a semi-precious stone licence, but ended up getting a licence that allowed the company access to other commodities.

Longfire Investment’s claims were being exploited by Xinfeng Investment, which is involved in lithium, he said.

“The important part here was the application of the company in the Uis area. This company has applied only for semi-precious stones, but they were granted a licence to go and mine lithium . . .

“The environmental commissioner said apparently there was an error on the environmental certificate, because there are two things there,’’ Areseb said.

He also said the mines commissioner told the delegation the company had applied for all commodities, while the application stating that it had applied for semi-precious stones.

“We requested the application on the system with the same information as the one that we have, and that’s when the heated conversation also started between the minister and the commissioner.”

Areseb described the meeting as tense.

“The minister wanted to find out why the system had an application for semi-precious stones, but you have a document stating the company has applied for semi-precious stones and other commodities,” he said.

ALLOW, XINFENG PLEADS WITH ALWEENDO

Meanwhile, Xinfeng yesterday wrote to Alweendo requesting the resumption of its lithium mining activities at Omaruru.

Pleading with the minister, the company said it has presented and put in place measures to ensure the development of a lithium processing plant in Namibia within the next 30 months – a first of its kind.

Xinfeng said its lithium plant can only materialise on the condition that mining operations at Omaruru commence to get the needed capital.

The company claims to have so far invested N$200 million and that it has been overshadowed by “external events that are not being well guided by both parties, giving rise to a non-conducive environment for engagement to pursue closer relationships’’.

The company claims to have employed more than 200 Namibians, who would suffer a loss of income with operations halted.
Xinfeng also wants the Ministry of Home Affairs, Immigration, Safety and Security to issue its skilled workers permits.

“… to transfer skills and knowledge to the local Namibian people, on the account that we possess a mining licence,” said Xinfeng’s management.

Simon has confirmed reception of Xinfeng’s letter.

He said the minister is yet to make a decision on the matter.