A Windhoek High Court judge has revoked a 20-year mining licence granted to Chinese-owned lithium mining company Xinfeng Investment. The licence was granted in September 2022 by former minister of mines and energy Tom Alweendo. Judge Thomas Masuku found that Xinfeng's application contained misleading information, which materially affected Alweendo's decision to grant the licence. The licence allowed Xinfeng to mine lithium near Okombahe, west of Omaruru.
According to Masuku's judgement, Xinfeng's application included plagiarised material, such as a report on lithium exploration work south of Karibib and a doctorate degree thesis from the University of the Witwatersrand in South Africa. The company's reports did not accurately describe work performed for its lithium exploration and mining project. Alweendo had alleged that Xinfeng used fraudulent misrepresentation in its application. The judge referred the company's application back to the mines minister for reconsideration.
Xinfeng has instructed its lawyers to lodge an appeal with the Supreme Court against the judgement. The appeal will have the effect of suspending the orders made by Masuku. Lawyer Nambili Mhata, representing Xinfeng, confirmed that the company is appealing the judgement. The company has invested significantly in its lithium exploration and mining project in Namibia, with an initial claim of N$600 million, later increased to N$800 million.
The company has faced allegations in the past that it was exporting large quantities of lithium ore from Namibia to China, instead of processing it in Namibia. The mining licence was initially granted for 20 years. Xinfeng had sued the minister of mines and energy, the mining commissioner, and the environmental commissioner in connection with Alweendo's decision to revoke the licence.
An interim interdict stopping the implementation of Alweendo's decision to revoke the licence was granted by the High Court in June 2023. The interdict allowed Xinfeng to continue operating while the court case was ongoing. The company's operations have significant implications for the local community and workers.
The judgement has significant implications for Xinfeng's operations in Namibia. The company's significant investment and interests do not justify preserving the mining licence, according to Masuku. The mines minister will reconsider Xinfeng's application for a mining licence.
The Namibian government has taken steps to ensure that mining companies operate transparently and in accordance with the law. The revocation of Xinfeng's licence demonstrates the government's commitment to upholding the law. The Supreme Court will hear Xinfeng's appeal.
Key points
- Xinfeng Investment's mining licence was revoked due to misleading information in its application.
- The company plans to appeal the judgement to the Supreme Court.
- Xinfeng has invested significantly in its lithium exploration and mining project in Namibia.
