NCMI Cheers JOGMEC's Rare Earth Investment, Updates Lofdal Project

In a significant move that underscores the growing importance of diversifying rare earth supply chains, Namibia Critical Metals Inc. (NCMI) has welcomed the recent investment by its joint venture partner, JOGMEC, and Iwatani Corporation into the Caremag rare earth separation project. This strategic investment, totaling up to €110 million, is set to bolster NCMI's position in the global rare earth market, particularly for heavy rare earth elements (HREEs) like dysprosium and terbium.

Strategic Alignment and Market Dynamics

The investment by JOGMEC and Iwatani into Caremag aligns perfectly with NCMI's strategic goals. As Darrin Campbell, President of NCMI, noted, "JOGMEC continues to be at the forefront of investment in the rare earth sector with its strategic investments in Lynas, NCMI, and now Caremag. This underscores the need to establish diversified rare earth supply chains." The Caremag project, a heavy rare earth separation plant owned by Carester of France, will play a crucial role in processing the HREEs that NCMI extracts from its Lofdal project in Namibia.

The geopolitical landscape has shifted dramatically in recent years, with supply disruptions in Myanmar and China's restrictions on rare earth exports amplifying the need for alternative sources. NCMI's Lofdal project, which contains approximately 75% HREO distribution, is uniquely positioned to meet this demand. The project's mineralization, predominantly albitization and carbonatization associated with carbonatite dykes, ensures a steady supply of critical elements like dysprosium and terbium.

Value Engineering and Operational Efficiency

NCMI has been actively engaged in value engineering for its Prefeasibility Study (PFS) for the expanded Lofdal 2B-4 Project. The company has implemented several key work streams to achieve planned operational expenditure (OPEX) savings and enhance overall efficiency. These include:

1. Increase of Feed Grade to Flotation: Based on positive XRT and XRF sorting tests, NCMI has altered its original flowsheet to introduce sorting for lower-grade material. This change is expected to increase the feed grade to flotation by 50%, significantly improving concentrate yields and reducing both OPEX and CAPEX in the final hydrometallurgical circuit.

2. Update of Mine Schedule and Plan: The run-of-mine has been increased from 2.1 Mt/a to 3.0 Mt/a, with a high-grade and low-grade stream. The high-grade material will directly undergo flotation, while the low-grade material will be upgraded by XRT sorting and possibly XRF sorting.

3. Additional Geotechnical Drilling: Commenced on April 3, 2025, this drilling is expected to allow steeper slope angles at the planned pits, thereby decreasing the stripping ratio and enhancing operational efficiency.

4. Water Supply: SLR Namibia has commenced work to identify a groundwater resource for sustainable extraction of Lofdal's water demand, ensuring a reliable water supply for the project.

5. Power Supply: NCMI aims to secure a power supply solution by an Independent Power Producer (IPP) based on photovoltaic with battery and limited diesel generator backup. Offers received demonstrate highly competitive resulting electricity prices, further reducing operational costs.

Future Outlook and Strategic Positioning

The recent geopolitical events in Myanmar and China's export restrictions present both opportunities and challenges for NCMI. On one hand, the supply disruptions have created a critical shortage in the global market for HREEs, positioning NCMI as a key alternative supplier. On the other hand, the company faces risks such as market volatility and dependency on partner execution.

NCMI's strategic partnership with JOGMEC and Iwatani, along with its focus on cost reductions and operational efficiency, positions it well to navigate these challenges. The company's accelerated PFS completion and capital allocation, along with its diversification of partnerships and markets, will be crucial to its future success.

Conclusion

NCMI's strategic investments and operational improvements, coupled with its partnership with JOGMEC and Iwatani, position it as a cornerstone of diversified rare earth supply chains. As the global demand for HREEs continues to grow, driven by technologies like EVs and permanent magnets, NCMI is well-positioned to capitalize on this trend. The company's ability to deliver on its PFS and leverage its position in Japan's supply chain diversification efforts will be pivotal to its future success.