Namibia Critical Metals Inc. has successfully renewed its Environmental Clearance Certificate for mining operations on Mining License 200, which covers the Lofdal Heavy Rare Earth Project. This approval allows the company to continue exploration, processing, and mining activities on the Lofdal site until September 2027.
The company also reported significant advancements in its Pre-Feasibility Study (PFS) for the expanded ‘Lofdal 2B-4’ project. The study now includes sorting test work using advanced XRF and XRT technologies to enhance the processing of lower-grade materials. Additionally, Namibia Critical Metals is conducting trade-off studies on electricity supply, evaluating a combination of photovoltaic, battery, diesel, grid connection, and on-site acid plant power generation options. These efforts aim to ensure a sustainable energy supply for the mining operations. The PFS is expected to be finalized by the first quarter of 2025.
Darrin Campbell, President of Namibia Critical Metals, expressed enthusiasm about the recent progress, particularly the environmental clearance and advancements in sorting technologies, which could help incorporate previously disregarded lower-grade materials into the production process. This, he noted, is crucial for sustainability, as it could allow the company to process materials that currently make up about a third of the mined output but fall below the cutoff grade.
Lofdal Project Overview
Namibia Critical Metals is developing the Lofdal Heavy Rare Earth Project, a Tier-1 deposit rich in dysprosium and terbium—key elements used in the production of permanent magnets essential for electric vehicles, wind turbines, and advanced electronics. The rising demand for these metals is driven by global shifts in energy and technology, making Namibia a strategically important, stable mining jurisdiction. The Lofdal Project is fully permitted with a 25-year mining license and operates under a joint venture with the Japan Organization for Metals and Energy Security (JOGMEC).
Joint Venture with JOGMEC
JOGMEC, an independent Japanese government agency, has partnered with Namibia Critical Metals to ensure a stable supply of rare earth metals for Japan’s economic growth. Under the joint venture, JOGMEC has committed to investing a total of C$20 million to earn a 50% interest in the Lofdal Project. So far, JOGMEC has completed Term 2, earning a 40% stake by meeting the C$10 million expenditure requirement. The agency has also provided over C$14.54 million in project funding to date, advancing toward its goal of securing half of the project’s equity.
JOGMEC also retains the option to increase its stake and the right to purchase all production at market prices, ensuring a stable supply of rare earth metals for Japan. Namibia Critical Metals and its Namibian partners will maintain a minimum 26% interest in the project, with the option to increase their share to 44% after the earn-in period.
As the Lofdal project continues to progress, it is set to become a key player in the global supply of rare earth metals, critical to the future of energy and technology industries.