African Mining January - February 2019 | Page 25

Country in focus One of the biggest risks in Namibia is reliable water supply, due to the country being a drought-prone area. Orano Resources Namibia operates and owns a desalination plant close to Swakopmund, which supplies water to all the uranium mines in the area. During our visit to Namibia, African Mining visited Desert Lion Energy’s license area, which includes two main mining sites: Helikon and Rubikon. Two smaller pits are associated with Rubikon, while more than seven smaller workings are found close to Helikon. In addition, about 32 historical stockpiles are scattered throughout the entire license area, on top of even more artisanal workings, tunnels, and open pits. Unfortunately, the lithium price took a hit in August 2018, which currently makes it unprofitable to mine the stockpiles on site. “The plan was to generate enough material from the surface stock to supply Chinese off-take partner and lepidolite converter Jaingxi Jinhui Lithium Company for a full year or so, from which enough capital would be generated to start mining from the open pits. Desert Lion Energy delivered its first shipment of 30 000 tonnes of lithium concentrate to the Port of Walvis Bay in April last year,” chief operating officer Johan Coetzee tells African Mining. Lithium market disrupted A proliferation of lithium mines in Australia and an oversupply in China have temporarily disrupted the market. Desert Lion Energy had to suspend all mining activities just after African Mining visited the project and soon after, the company was awarded with its mining license by the Ministry of Mines and Energy of Namibia, which meant it could start mining in situ material. Nonetheless, Tim Johnston, CEO of Desert Lion Energy, assured us during a follow-up phone call that the lithium market remains strong, with growth of 12–14% year on year. “We remain hopeful that the market will turn and that the project will be back on www.africanmining.co.za track soon. We will continue developing the asset and we are in discussions with our Chinese partners Jaingxi Jinhui, as product pricing will dictate the form in which we restart the operation,” Johnston said. Desert Lion Energy’s mining license has been granted for an initial 10-year period and covers an area of 68.7km², which includes the area where the Rubikon and Helikon mines are located. All gold With the development — and success — of Canadian company B2Gold’s Otjikoto gold mine close to Otjiwarango in the Otjozondjupa region of Namibia, gold mining has received renewed focus in the country. B2Gold, another mine recently visited by African Mining, runs a tight ship at Otjikoto and has continuously recorded successes at the mine. Otjikoto consists of two open pits about 200m deep, and boasts recoveries of more than 98%, which makes it an outstanding producer in the global mining community. Gold mining is not foreign to Namibia. Most of the country’s gold is produced from trace amounts in sulphide minerals. Gold was first discovered near Rehoboth in 1899, and the metal was mined at Golden Valley in the Rehoboth district for many years. Though, from 1917 to 1963, gold exploration work in Namibia focused on the Ondundu goldfields in Damaraland; an area which today is targeted with renewed vigour by B2Gold’s exploration team and where Namibia’s third gold mine is most likely to arise. New technology and exploration methods have enabled JANUARY - FEBRUARY 2019 AFRICAN MINING 23