LOSING REVENUE: The ministry of mines is being blasted over a decision to allow continued exports of lithium ore to China. PHOTO: MINISTRY OF MINES AND ENERGY
LOSING REVENUE: The ministry of mines is being blasted over a decision to allow continued exports of lithium ore to China. PHOTO: MINISTRY OF MINES AND ENERGY

NEFF accuses mines ministry of enabling thievery

Govt losing revenue, MP says
IPC spokesperson Imms Nashinge took aim at mines minister Tom Alweendo, saying he merely pretending to be against corruption.
Ogone Tlhage
Namibia Economic Freedom Fighters (NEFF) parliamentarian Longinus Iipumbu has accused the ministry of mines and energy of enabling thievery after it allowed Chinese lithium miner Xinfeng Investment to continue exporting lithium ore through the port of Walvis Bay.

The ministry gave the company the green light to continue exporting lithium ore to China, saying it was born out of prior contractual arrangements Xinfeng had entered into with a shipping company already en route to Namibia.

"This is a sign that even if you see a thief stealing, you should give space to people to keep on stealing," Iipumbu remarked.

He questioned whether the arrangement between government - as custodian of mineral resources - and Xinfeng was above board.

"Was this agreement done procedurally? Government was supposed to stop this," he said.

Losing revenue

Iipumbu further questioned whether government had done an evaluation into how much revenue it was losing as a consequence of the export of lithium ore to China.

"55 000 tonnes of lithium ore - can we get an estimate as to how much is charged per tonne? How much are we giving away to the Chinese?" he asked.

The uncontrolled export of lithium to China could potentially deplete the resource, he added.

"There is no consensus to say we will have lithium in 20 years."

Disturbing

Independent Patriots for Change (IPC) spokesperson Imms Nashinge said the move to allow the continued export of lithium ore was disturbing.

"Any sensible Namibian should be disturbed. It is a problem and it is greatly concerning," he said.

He also used the opportunity to take aim at mines minister Tom Alweendo, saying he was putting up a front that he is against corruption while enabling it.

"This is disappointing from Alweendo who presented himself as different from others. All beans cooked in the Swapo pot taste the same," he said.

Not our business

Meanwhile, according to Alweendo, it is not up to Namibia to account for a contractual agreement entered into between Xinfeng and a Chinese shipping company.

"How does an agreement between that entity and the shipping company become our business? How do we even know quote them? This is how much you shipped out, this is how much you owe us," he asked.

The global weighted average price of lithium carbonate was US$59 928 per metric tonne in August, up from US$13 924 in August 2021 and US$6 128 in August 2020, according to Benchmark Mineral Intelligence.

Lithium is used as an input in batteries for electric vehicles.

In a statement, the ministry said it approved the export of lithium ore to China, but that this will cease at the end of the month.

"This is a once-off arrangement and the 'no export ban' on the company will apply effective 30 November until the company's revised mining programme is evaluated and approved."

The export of ore to China is necessitated to evaluate the potential of establishing a lithium processing plant in Namibia, it added.

Comments

Harry Tjihukununa 2 Year Ago 17 November 2022

We are in for a raw deal as always. Will we ever learn a lesson!

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Harry Tjihukununa 2 Year Ago 17 November 2022

In a raw deal as always! Will we ever change for good. The good example is with Zambia!

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