Xinfeng partner seeks approval to export raw lithium

Xinfeng Investments' cooperative partner, Long Fire Investments, is seeking mines minister Modestus Amutse’s approval to export a stockpile of lithium concentrate to raise capital for restarting operations at Uis.

The mines ministry ordered the company to suspend operations in November 2024 after discovering that it was illegally extracting reserves above the 60-metre depth within its 10 valid mining claims.

The company's appeal, contained in a letter dated 16 March and addressed to Amutse, follows the minister's visit to the Erongo region.

Long Fire says the shipment is critical to raising funds needed to restart mining operations at its Uis project.

The company said it has secured a vessel booking for early April but warned that limited shipping availability on routes serving the African region makes the opportunity time-sensitive.

It also says exporting the existing lithium concentrate stockpile is essential to generate the cash flow required to support the immediate resumption of mining operations and continued investment in the project.

"The successful export of these materials will also contribute to royalty payments and tax revenues for the government of Namibia while strengthening the project's sustainability moving forward," the letter reads.

Mining revival

The letter further states that the reserves were mined using open-cast and open-pit methods when prevailing international mineral prices were too low to sustain the higher operational costs associated with transitioning to underground cave mining below the 60-metre level.

"With improved global market conditions in 2026, the company has now resolved to restart operations by transitioning to underground cave mining to target deeper mineral reserves," the company says.

Long Fire says it has mobilised all required underground mining equipment and machinery.

Additionally, Long Fire says the 10 mining claims have been successfully renewed and remain valid until December 2027, while mining licence application No. 257 has been submitted to support long-term development.

"The restart strategy is anchored by an existing mineral processing plant in the Uis area with an annual processing capacity of approximately one million tonnes, into which the company has invested about N$350 million," the company further says.

Support for small miners

The company added that it is also prepared to purchase lithium ore from licensed small-scale miners and process the material through its plant, in line with government policy encouraging domestic processing and value addition.

According to the company, this approach will provide a stable, compliant market for small-scale miners, support local beneficiation of lithium resources, and promote value addition in Namibia rather than exporting unprocessed ore.

Amutse told the Namibian Sun yesterday that the letter has not yet reached his office.

"Maybe it has been sent to a unit responsible that will make recommendations for my attention," Amutse said.

Mining commissioner Isabella Kandjii-Chirchir referred Namibian Sun to the executive director Moses Pakote, who was unreachable when contacted yesterday.

Big promises

Before the suspension of operations, the project employed approximately 230 workers, including around 200 full-time employees and 30 temporary workers across departments such as mining operations, mineral processing, transportation and logistics, drilling, mechanical maintenance, security, and administration.

Upon resumption, the company says it will prioritise the re-employment of former workers who have already received training and accumulated operational experience over the past two years.

Long Fire says recruitment will be sourced mainly from Uis and the broader Erongo region, while key management positions, including mining engineer, safety supervisor, HR and administration manager, and site operations supervisor, will prioritise qualified Namibian professionals.

The company promises a salary structure aligned with Namibian labour regulations, including basic salary, medical allowance, transport allowance, and, where applicable, overtime compensation, to ensure fair remuneration and workforce stability.

Safety and health

Safety enhancements, Long Fire says, are central to the restart plan. These include implementing international-standard safety management systems, appointing a qualified Namibian safety supervisor, and providing continuous safety training programmes. The company also plans to improve personal protective equipment, enhance emergency response procedures, and establish an on-site clinic and ambulance service.

The company also plans to introduce internship and graduate training programmes for young Namibian engineers and geologists.

Operational improvements will include upgraded accommodation, enhanced health and welfare amenities, and expanded cooking and dining facilities. It also aims to strengthen workplace policies to promote occupational health and employee well-being.

Long Fire says it is engaging with local stakeholders, including the Daures Dama Traditional Authority and the Tsiseb Conservancy, which have proposed entering into memorandums of understanding with the company.

The company indicates its intention to advance these cooperation initiatives as part of its commitment to responsible mining and inclusive development.

It says resuming operations will contribute 2% to the economy through royalty payments, corporate tax contributions, employment creation, increased economic activity in the region, and support for small-scale mining through ore purchasing and processing.