Omanghana
Namibia is taking a major step toward transforming its mineral sector by moving away from the export of raw resources and investing in domestic processing of critical minerals.
Namibia Critical Metals Inc. has announced a C$11 million ($7.8 million) investment to advance its flagship Lofdal rare earth project into the next stage of a Definitive Feasibility Study (DFS).
The funding will support the development of integrated hydrometallurgical processing facilities designed to allow Namibia to produce high-grade heavy and light rare earth carbonates locally, rather than shipping raw mineral concentrates overseas for processing.
The move reflects a broader African push to capture more value from natural resources before export.
From Raw Ore Exports to Higher-Value Processing
For decades, many African mining operations have focused primarily on extracting minerals and exporting raw concentrates, with much of the advanced chemical processing taking place abroad, particularly in China.
Namibia’s strategy represents a shift toward a more valuable stage of the mineral supply chain.
By producing rare earth carbonates locally, the country will move beyond basic mining activities and begin participating in mineral refining.
Heavy rare earth carbonates produced through the Lofdal project could include elements such as:
- Dysprosium
- Terbium
These minerals are essential components in advanced technologies, including:
- Electric vehicle motors
- Wind turbines
- Robotics
- High-performance electronics
Africa’s Next Challenge: Completing the Value Chain
While domestic production of rare earth carbonates represents significant progress, experts note that Africa still has limited capacity at the highest-value stages of the industry.
The most profitable levels of the rare earth supply chain include:
- Purified rare earth oxides
- Specialized alloys
- Permanent magnets used in advanced technologies
Industry analysts, including those from Ecofin Agency, have highlighted that developing these capabilities will be the next major challenge for African mineral-producing countries seeking greater economic returns.
Namibia Strengthens Resource Control Policies
The investment in processing aligns with Namibia’s broader resource strategy aimed at ensuring more mineral wealth remains within the country.
The Namibian government has introduced restrictions on the export of unprocessed critical minerals, including:
- Lithium
- Cobalt
- Graphite
- Manganese
- Rare earth elements
Mining companies seeking expanded operating rights are increasingly expected to demonstrate plans for local refining and value addition.
Continental Push for Mineral Sovereignty
Namibia’s approach reflects a wider trend across Africa, where governments are introducing policies designed to increase domestic participation in mineral industries.
Other examples include:
Mali’s Gold Refining Expansion
Mali is developing a large-scale gold refinery with a planned capacity of around 200 tonnes annually, aimed at increasing local processing of its gold resources.
Ghana’s Gold Sector Reforms
Ghana has introduced measures requiring the state to purchase a portion of large-scale gold production to strengthen domestic refining capacity and improve control over gold reserves.
These policies reflect growing calls across Africa for a transition from being primarily a supplier of raw materials to becoming a producer of higher-value mineral products.
Global Demand Drives Rare Earth Investment
The push for local processing is also being accelerated by global efforts to diversify critical mineral supply chains and reduce dependence on China’s dominance in rare earth refining.
Japan has taken a strategic interest in Namibia’s Lofdal project through the Japan Organization for Metals and Energy Security (JOGMEC), which holds a 40% stake in the development.
The partnership is aimed at securing access to heavy rare earth elements outside China’s supply network.
Rising Demand for Rare Earth Minerals
Demand for rare earth elements is expected to grow rapidly as countries expand clean energy and advanced technology industries.
The International Energy Agency (IEA) projects that global demand for rare earth materials used in permanent magnets will increase by 25% between 2025 and 2030.
Meanwhile, Benchmark Mineral Intelligence estimates that Africa could account for as much as 9% of global rare earth supply by 2029, highlighting the continent’s growing importance in the critical minerals market.
Namibia’s Bid for a Bigger Role
Through the Lofdal project and stronger resource-retention policies, Namibia is positioning itself as a key player in the global rare earth industry.
The country’s move toward domestic processing reflects a wider African ambition: to ensure that the continent benefits not only from extracting its natural resources but also from the high-value industries built around them.
Source: Omanghana
