{"id":42562,"date":"2023-04-06T19:23:41","date_gmt":"2023-04-06T19:23:41","guid":{"rendered":"https:\/\/www.africa-press.net\/namibia\/all-news\/lithium-boom-on-the-horizon"},"modified":"2023-04-06T20:18:18","modified_gmt":"2023-04-06T20:18:18","slug":"lithium-boom-on-the-horizon","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/namibia\/all-news\/lithium-boom-on-the-horizon","title":{"rendered":"Lithium boom on the horizon"},"content":{"rendered":"

Africa-Press – Namibia. <\/strong><\/span>Namibia\u2019s lithium revenues, based on Simonis Storm estimates, could exceed all other commodities combined, and could therefore improve the country\u2019s trade and current account balances as well as gross domestic product growth rates.<\/p>\n

This is according to a Lithium Report compiled by the local stock brokerage and released this week. \u201cGiven our estimates, the local lithium sector\u2019s revenue to government would be the largest, compared to all other commodity mining operations in Namibia\u201d, it stated.<\/p>\n

In the report, SS cautions about a long-term view on lithium, given a threat of new entrants to the battery and Electric Vehicle (EV) market. \u201cIt can well be that lithium is not the preferred mineral for battery, renewable energy, equipment and electronic consumer goods production in the long run,\u201d Simonis Storm observed. The report noted that restarting lithium production in Namibia after 1998 can be a good development for the local mining industry and the country\u2019s economy. SS pointed out that given the capital-intensive nature of general mining, it is not expecting lithium to contribute to major boosts to socio-economic indicators such as employment, but does view the renewed interest in Namibian lithium mining as a positive for export earnings and government revenue.<\/p>\n

The local stock brokerage estimates the value of the local lithium industry as high as US$770 million (6.7% of GDP) to US$364 million (3.2% of GDP), with total taxes paid to government at US$240.1 million, and royalties of US$34.3 million in the extreme case.<\/p>\n

\u201cUsing an average rand to USD exchange rate of 18, these figures are as high as N$13.9 billion in terms of the sector\u2019s value, N$4.6 billion in revenue to government (taxes and royalties combined) in the extreme case and N$1.7 billion in the conservative case\u201d, the SS report states. Prices for lithium more than doubled last year, as demand from the electric vehicle industry outstripped supply.<\/p>\n

In comparison, mid-year estimate figures for the current financial year show diamond mining companies could pay N$1.6 billion in taxes and N$1.5 billion in royalties. For non-diamond mining companies, taxes paid are estimated at N$576 million, and royalties at N$618 million. The Simonis Storm<\/p>\n

report further stated that timing and ore grades are big considerations in mining. An opportune time to invest, whether as a mine or individual investor, is usually once the bubble has burst, which it stated the global lithium price data shows has occurred.<\/p>\n

\u201cIt is important to note that Namibia\u2019s estimated lithium reserves have grade concentrates far below the global standard of 6%. So, Namibia\u2019s lithium exports will fetch a lower global price per tonne and so the estimates above could be overstated,<\/p>\n

unless better grade concentrates can be discovered,\u201d the SS report continued. Lithium is a soft, silvery-white alkali metal. Under standard conditions, it is the least-dense metal and the least-dense solid element. It is highly reactive and flammable. Lithium is an essential component in modern lithium-ion batteries since it has the highest electrochemical potential of all metals, and the highest specific capacity. Compared to other battery types, lithium-ion battery technology currently has the highest energy density, the longest cycle life, the widest temperature range tolerance and the lowest self-discharge rates. Because of the auto industry\u2019s shift towards EVs, brought about by proposed bans on fossil-fuel cars beginning at the end of the decade, lithium prices and demand have soared.<\/p>\n

China is the world\u2019s top lithium refiner, and a leading producer. However, Western governments and companies are trying to challenge that, and see Africa\u2019s lithium reserves as an opportunity. Africa\u2019s lithium production is set to rapidly increase this decade. From 40 000 tonnes this year, the continent will likely produce 497 000 tonnes in 2030, commodities trader Trafigura estimates, with the bulk of that coming from Zimbabwe.<\/p>\n

That country in December imposed a ban on raw lithium exports, a measure aimed at stopping the smuggling of lithium ore, and spurring mines to process in the country.<\/p>\n

Namibia will follow that example.<\/p>\n

\u201cWe are saying to ourselves, if you have got the minerals that everybody wants now, you need to make sure that at least you probably mine those minerals differently, and not in the usual manner,\u201d Namibia\u2019s mines minister Tom Alweendo told Reuters in an interview at the \u2018Investing in African Mining\u2019 Indaba in Cape Town in February.<\/p>\n

\u201cWe are going to insist that all lithium mined within the country has to be processed in the country.\u201d Meanwhile, the local stock brokerage emphasised that lithium<\/p>\n

exploration in Namibia has expanded significantly in the last two years. The report reads: \u201cTwo lithium mines were operational prior to Independence are now taken over by new investors, who are looking at restarting these operations. If current explorations realise in actual production operations, Namibia will essentially be adding a whole new commodity market to its local mining industry by restarting lithium mining since 1998. Two of the biggest and most progressed lithium operations in Namibia include Lepidico and Andrada\u2019s operations\u201d.<\/p>\n

The SS report noted that Karibib is fully permitted for the re-development of two open pit mines at Rubicon and Helikon 1, which will feed lithium mica ore to a central mineral concentrator. During 2022, phase one of the project estimated ore reserves at 9.4 million tonnes and a life of mine of 19 years.<\/p>\n

Drilling at Helikon 2 and 3 commenced in February 2023, with the objective of extending the life of mine to over 20 years.<\/p>\n

Drilling results at Uis from Andrada\u2019s tin mine surpassed expectations in terms of lithium grades, and reinforced their belief that Uis hosts one of the largest lithium resource deposits globally. Andrada\u2019s estimates indicate a higher ore grade than Lepidico.<\/p>\n

\u201cIn February 2023, the company announced a 30% increase in estimated reserves to 81 million tonnes. An advantage for the Uis mine is that Andrada can progress to commercial production much faster than new greenfield lithium resources being pursued elsewhere in Namibia. The company is in the process of constructing a pilot facility to process large amounts of lithium and secure an off-taker,\u201d the SS report added.<\/p>\n

\u201cWe exclude other lithium operations in our calculations as they are still in the exploration phase, and given that no credible information around Xinfeng can be found. We, therefore, only use publicly-available production estimates from one local mine and apply this figure to other mines, and further assume that no other lithium mine<\/p>\n

becomes operational in 2025,\u201d the SS report clarified.<\/p>\n

For More News And Analysis About Namibia<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Namibia. Namibia\u2019s lithium revenues, based on Simonis Storm estimates, could exceed all other commodities combined, and could therefore improve the country\u2019s trade and current account balances as well as gross domestic product growth rates. This is according to a Lithium Report compiled by the local stock brokerage and released this week. \u201cGiven our […]<\/p>\n","protected":false},"author":84,"featured_media":42561,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5,6],"tags":[234,236,233],"class_list":["post-42562","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-files","tag-africa-press","tag-africa-press-namibia","tag-namibia"],"yoast_head":"\nLithium boom on the horizon - Namibia<\/title>\n<meta name=\"description\" content=\"Namibia\u2019s lithium revenues, based on Simonis Storm estimates, could exceed all other commodities combined, and could the ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/namibia\/all-news\/lithium-boom-on-the-horizon\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Lithium boom on the horizon\" \/>\n<meta property=\"og:description\" content=\"Namibia\u2019s lithium revenues, based on Simonis Storm estimates, could exceed all other commodities combined, and could the ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/namibia\/all-news\/lithium-boom-on-the-horizon\" \/>\n<meta property=\"og:site_name\" content=\"Namibia\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2023-04-06T19:23:41+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-04-06T20:18:18+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/nambia\/sites\/29\/2023\/04\/postQueueImg_1680792830.18.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"720\" \/>\n\t<meta property=\"og:image:height\" content=\"483\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/lithium-boom-on-the-horizon#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/lithium-boom-on-the-horizon\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/namibia\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Lithium boom on the horizon\",\"datePublished\":\"2023-04-06T19:23:41+00:00\",\"dateModified\":\"2023-04-06T20:18:18+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/lithium-boom-on-the-horizon\"},\"wordCount\":1074,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/lithium-boom-on-the-horizon#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/nambia\/sites\/29\/2023\/04\/postQueueImg_1680792830.18.jpg\",\"keywords\":[\"africa press\",\"Africa Press-Namibia\",\"namibia\"],\"articleSection\":[\"all news\",\"economy\",\"files\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/namibia\/all-news\/lithium-boom-on-the-horizon#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/lithium-boom-on-the-horizon\",\"url\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/lithium-boom-on-the-horizon\",\"name\":\"Lithium boom on the horizon - 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