Namibia Critical Metals (TSX-V:NMI, OTCQB:NMREF) Inc has entered into a memorandum of understanding (MOU) to conduct a feasibility study for a proposed rare earth separation plant in Namibia, the company announced.
The plant would produce rare earth metals that can be directly used in the production of permanent magnets for electric vehicles and wind turbines.
A recent preliminary economic assessment of the company’s expanded Lofdal 2B-4 project projects an annual production of roughly 2,000 tonnes of mixed rare earth oxides (MREO) over 16 years containing an average of about 117 tonnes dysprosium oxide and 17.5 tonnes terbium oxide, the most valuable rare earth elements.
However, separating the rare earth elements has long been a bottleneck. Several separation technologies exist, but separation facilities need a significant upfront capital expenditure, a steady raw material supply and a critical mass to operate viably.
That’s why the three advanced rare earth project developers in Namibia opted to jointly embark on a feasibility study for such a separation plant in Namibia, the company said.
Joining Namibia Critical Metals (TSX-V:NMI, OTCQB:NMREF) as parties of the MoU are TSX Venture Exchange-listed E-Tech Resources, which is exploring the Eureka monazite deposit in central Namibia, and Ondoto Rare Earth Ltd, a private Namibian company developing the high-grade Ondoto bastnaesite deposit in northern Namibia.
The three companies will participate in a joint venture called the Rare Earth Alliance Namibia.
"We are thrilled to explore the technical and commercial potential of a rare earth metal separation facility in Namibia,” Namibia Critical Metals president Darrin Campbell said in a statement. “With the three partners of the Rare Earth Alliance Namibia, we reach the critical mass to build such a metal separation plant. Our partners from Ondoto can provide licensed brownfield sites and construction teams which would potentially allow for a timely realization of permitting and construction of the facility.”
If everything goes to plan, the Rare Earth Alliance Namibia’s goal is to design, construct and operate the REE separation facility through a special purpose vehicle.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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