• Mining

Xinfeng licence battle continues

- 2023-08-29 00:00:00

Xinfeng Investments continues its fight in the Windhoek High Court, where it applied to stop minister of mines and energy Tom Alweendo from cancelling its mining licence (ML243) for its dormant mine just outside Omaruru.
Judge Ramon Maasdorp has a mountain of filed documentation to go through before the next case management hearing, set for 19 October.
The case continues following an initial victory for the Chinese lithium miner on 27 June, when Maasdorp granted its urgent application to prevent Alweendo from cancelling the licence and forcing it to vacate the mine by 31 May.
However, Maasdorp did find prima facie evidence indicating that Xinfeng may have committed plagiarism and fraud in its initial application for the licence.
It was based on this accusation that the minister intended to revoke the awarding of the licence, although Maasdorp found that he did not have the power to do so in accordance with Namibia’s Minerals (Prospecting and Mining) Act. The judge found that Alweendo should have approached the courts to get the award of the application reviewed. This process is now ongoing.

Growing tensions
Since that initial judgment, the minister, the mining commissioner and Namibia’s environmental commissioner have had to file a review record.
Xinfeng was expected to amplify or amend its notice of motion and file supplementary founding and supporting affidavits by 16 August, while the respondents have until 31 August to file counter-applications and supplementary answering affidavits. Xinfeng can reply in the main application and file answering affidavits in the counter-application by 18 September, whereupon respondents can reply before 3 October. Finally, the parties will file a joint case management report before 11 October and the case management conference, set for 19 October.
The case follows growing tensions between Alweendo and Xinfeng, stemming from the mining company's export of huge volumes of raw lithium ore through the port of Walvis Bay last year. The ore was purportedly for testing in China to determine how best to design a lithium concentration facility here in Namibia.
However, despite Xinfeng’s presentation of valid transportation and export permits authorised by his ministry, Alweendo was not convinced and was eventually able to put a stop to the exports.
Earlier this year, Cabinet approved the minister’s application for a ban on the export of certain unprocessed critical metals - including lithium, cobalt, manganese, graphite and rare earth elements. The export of these raw ores in small quantities can still be done, but only at the minister’s discretion, since the Cabinet decision announced on 7 June.

Not approved
Operations at the mine outside Omaruru have been on pause since December, after an application to adjust the work programme was not approved by the minister. Meanwhile, Xinfeng started building a new open-pit mine outside Uis.
Xinfeng, a Namibian company and subsidiary of Tangshan Xinfeng Lithium Industry in China, earlier this year elaborated on its activities outside Uis.
Through local lawyers, Nambili Mhata Legal Practitioners, it said it secured consent from the Daure Daman Traditional Authority (DDTA) to explore in the authority's jurisdiction in 2022.
Following the consent, Xinfeng entered into a joint venture (JV) with Longfire Investments, a Namibian company and the claims holder to 10 Namibian mining claim rights - 73409 through 73418 - for the next three years.
An environmental clearance certificate was also issued to Longfire Investments, following a thorough environmental assessment impact study, according to Xinfeng.
“The JV represents a strategic partnership between two Namibian companies, Xinfeng being the investor with international experience. The JV is aimed at transferring knowledge and skills, offering employment opportunities and contributing to the sustainable development of Namibia," it said.
"The JV's objective is to build a mineral beneficiation plant that will be managed by Namibians, with assistance from Xinfeng Investments' experts. The current mining operations for the mining claims are set to benefit all parties involved. There is a lease agreement with the DDTA for the surface rights, in which the JV commits to support the community with proceeds from the mining claims,” the company said at the time.
To date, no update on the development of the beneficiation plant has announced publicly.