By: Justicia Shipena
The Namibian government does not have the funds to establish a local lithium processing factory, according to Mining Commissioner Isabella Chirchir.
This contradicts Mines and Energy Minister, Tom Alweendo’s announcement in February, that Namibia will insist on local processing of lithium.
The demand for lithium skyrocketed in recent years, and Africa’s lithium production is projected to soar this decade.
According to commodities trader Trafigura, the continent will likely generate 497,000 tonnes by 2030.
“The only people who can (set up lithium processing plants) are investors because the government does not have money to put up something like that,” Chirchir pointed out.
This comes after Landless People’s Movement (LPM) member of parliament, Henny Seibeb proposed the establishment of a community-owned lithium factory at |Uis, with 60% community ownership.
Despite the Mines Minister’s statement on lithium processing and a call for a lithium factory, Chirchir told The Villager the government currently has no plans in the works for this.
“So currently there are no plans, especially from the government’s side, but we do implore investors to assist to put up a processing plant,” she said.
In April, the German government pledged to help Namibia set up lithium processing plants.
German Chancellor Olaf Scholz made this offer, stating the German government is eager to assist Namibia in establishing local lithium processing infrastructure.
When asked about the German government’s interest, the Mining Commissioner said she was unaware of such.
“I don’t have anything communicated to me. I don’t know about it,” she said.
Namibia is attempting to build processing and refining enterprises in order to take a larger share of the profits generated by worldwide demand for battery material.
The Namibian government, on the other hand, has come under fire for permitting tonnes of lithium to be exported out of the country without an export licence.
In 2022, Alweendo criticised his Ministry’s staff in charge of export permissions for the Chinese mining business Xinfeng Investments receiving export permits worth 135,000 tonnes of crushed ore.
The Minister claimed that his authorities failed to reach an agreement with the company on the entire amount of ore that should be exported for testing reasons.
It was stated at the time that Xinfeng had already exported 75,000 tonnes of lithium ore to China.
Meanwhile, political analyst Henning Melber asserts there is a global shortage of strategic resources such as rare earth elements and other rare metals such as lithium.
Melber stressed that Namibia has been blessed with enormous volumes of lithium finds, which have piqued the interest of numerous global actors in various regions of the world.
“Lithium is necessary in the current energy related transformation because it is required for batteries. This makes it an extremely valuable asset, and Namibia becomes additionally attractive for foreign interest,” Melber said.
He stated Germany’s interest in the Namibian lithium business can be used as a strategic manoeuvring tool and asset to negotiate the best deals for Namibia.
In January of this year, the German broadcaster Deutsche Welle reported that Germany is falling behind in the worldwide race for lithium.
“This means the best deals for the Namibian people. This requires transparency and accountability in the negotiation process. It would need to invite all the global players interested towards the table and put the cards on the table, what they are willing to offer in return for joining enterprises,” he explained.
Melber told The Villager that, in general, it is not a terrible idea to pursue such arrangements with corporations in nations with a strong civil society, which frequently serves as a watchdog by thoroughly criticising the exploitative practises of companies in their own countries.
According to Melber, civil society in Namibia should have access to the negotiations in order to determine whether the arrangements are truly in the best interests of the Namibian people, adding: “And not confined to the best interests of elites in the state and private sectors, which exploit the natural resources wealth mainly for their own benefit.”
He stated that lithium is indeed a window of opportunity if checks and balances are maintained, and that Germany’s intention to participate in a deal with Namibia makes it a serious possibility to securitise it.
