PREVIEW
JOGMEC and Toyota Tsusho agree a joint venture for the Lofdal deposit, but questions remain over downstream processing
The Japan Organisation for Metals and Energy Security will invest up to US$33.9 million in a Toyota Tsusho unit developing a heavy rare earths project in Namibia, the two companies announced on 30 July. The partners said the project could become Japan's first rare earth mine development in Africa and strengthen supplies of critical minerals. They are to complete a definitive feasibility study before making a final investment decision.
It is not yet clear whether they plan to set up local minerals processing facilities. In June, G7 countries agreed new accords on critical minerals access and processing to slash their reliance on China. Beijing controls access to more than 70% of the world’s critical minerals and processing (Dispatches 22/6/26, G7 mineral pact puts African producers in crossfire of big-power rivalry).
The mine at the Lofdal project in Namibia’s Kunene region contains dysprosium and terbium, key materials used in electric vehicles, wind turbines and defence technologies. The Japanese investment would mark its first rare earth mine development in Africa.
Windhoek is still keeping close ties with Beijing. In July, President Netumbo Nandi-Ndaitwah returned from a state visit to China with a series of eight cooperation and investment deals with Beijing including an extremely detailed mineral processing and beneficiation plan (AC Vol 67 No 15, Nandi-Ndaitwah leans on Beijing). Domestic mineral processing is the prize sought by African governments across the continent as they seek to obtain more value and create jobs from minerals production and exports.
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