Alweendo loses, but Xinfeng must explain licence acquisition

The Windhoek High Court yesterday ruled that controversial Chinese lithium mining company Xinfeng Investments is entitled to retain its mining licence for its open-pit mine outside Omaruru, but it must explain how it obtained the permit.

This amid allegations that the licence (ML 243) was fraudulently acquired, which was the basis of mines minister Tom Alweendo’s decision to withdraw it.

Judge Ramon Maasdorp ruled that Alweendo was not authorised to revoke the licence before he approached the court.

Maasdorp also ordered that the minister pay the other party's legal costs.

It was not all good news for Xinfeng, though. The judge found that the company would have to provide answers regarding the prima facie allegation that it was not completely honest in its initial licence application.

This issue will be dealt as the case continues, now that the urgent application - to stop the minister from declaring the licence void - has been concluded.

Lithium rush

Xinfeng's mine has not been operational since December as an application to adjust its work programme has not been approved by the minister.

Meanwhile, the company has started building a new open-pit mine on abandoned land outside Uis.

Xinfeng - which is considered a leader in the lithium rush in Namibia - had its operations temporarily cut short after Alweendo stopped the exportation of unprocessed lithium ore to China last year.

Earlier this month, Cabinet supported the ban on ore exports and expanded the list to include other minerals.

Without approval

Another Uis mining company, Andrada Mining, is also progressing with its plans to adapt its tin-processing plant to produce lithium and tantalum concentrate. The company yesterday announced that construction work is progressing quickly and that it should be able to carry out the concentrate on schedule and within the budget by next month.

Andrada - which is listed in South Africa and in London - also responded last week to allegations that it was carrying out blasting in the town without approval.

The company said it is currently only blasting on ML 134. Andrada also holds ML 129 and ML 133.

“The relevant proposed blasting is related to ML 129 (Spodumene Hill/B1C1). The preparations for the blasting took place within the mining licence provisions and, more specifically, the site is 11 kilometres outside Uis.

“The licence area falls within the jurisdiction of the traditional authority, hence the company's direct connection with the office. Consultations were held with the people who live in the area on a regular or permanent basis - in the presence of the head of the traditional authority.

"In addition, a letter of consent was received from Telecom Namibia prior to preparations for the blasting operations. Andrada Mining ensured that the blast managers all had valid blast tickets and appointments," consultant Cath Drummond said on behalf of the mining company.

Australia's Askari Metals Limited is also developing its own lithium project in Uis, with exploration licences EPL 7345 and EPL 8538 located between Andrada's licences in the town.

Meanwhile, Canadian company Moonbound Mining has also recently joined the rush. They agreed with Continental Lithium African Development Corporation, also from Canada, to develop claims between Uis and Cape Cross.

Australia's Prospect Resources is also in the running with its own lithium project outside Omaruru, while Lepidico is also making progress with its Karibib lithium project, where it wants to start construction on the mine by next year.

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