The Japan Organisation for Metals and Energy Security (Jogmec) will invest up to N$565 million into its rare earths project in the Kunene region.
The Lofdal rare earth development project was launched by Jogmec and the Canadian mining company, Namibia Critical Minerals Inc (NCMI), in 2020.
The Toyota Tsusho Corporation – a company of the Toyota Group – joined the project in March, participating within Jogmec’s existing ownership interest.
“Now, Toyota Tsusho has established TJ Namibia Rare Earths Corporation (TJ), a special purpose company to carry out the project, and Jogmec has decided to invest up to C$47.6 million in TJ,” Toyota Tsusho announced this week.
The initial investment was made on 23 July.
When Jogmec entered the partnership with NCMI, the funding agreement stated that the Japanese corporation could earn up to a 51% interest in the project. When Toyota joined in March, Jogmec had already reached the threshold for 40% ownership.
TJ will conduct a definitive feasibility study for the project this year. Jogmec and Toyota Tsusho say they aim to make a final decision on the commercial viability of the project within a year.
“The Lofdal deposit contains substantial heavy rare earth resources, including dysprosium and terbium, which are required for the manufacture of permanent magnets, particularly those used in automobile motors,” Toyota Tsusho’s statement says.
“As Japan’s first rare earth mine development project in Africa, the project is expected to contribute to securing a stable supply of rare earths for Japan,” Toyota Tsusho says.
The Lofdal project has a 25 year mining licence, with 5% of the ownership of the project being held for the benefit of historically disadvantaged Namibians, according to NCMI.
The Japanese embassy in Namibia’s head of the economic and development cooperation section Takehiro Yamada says the funds will be used conduct the definitive feasibility study (DFS) (feasibility assessment) related to the Lofdal project.
“Jogmec and Toyota Tsusho plan to newly invest C$47 million through TJNamibia Rare Earth Co Ltd,” Yamada says.
He reveals that Jogmec has not yet acquired a 50% stake in the Lofdar Project.
“Through DFS funding (the C$47 million decided this time) and DFS, we aim to acquire 50% equity in the Lofdar project.”
