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
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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
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