The proposed sale of the Karibib lithium project in Namibia to a British-based company, African Critical Elements (ACE), has raised concerns over foreign ownership and control. ACE, which is majority-owned by John Wisbey, applied to the Namibian Competition Commission (NaCC) in April to buy shares of the company that owns the project. The company has a diverse shareholder base, with ownership from directors and employees from various countries.
The Karibib lithium project is currently 80% owned by Lepidico Canada, a subsidiary of an Australian company that entered liquidation last year. The remaining 20% is owned by Huni Urib, a Namibian company. Due to Lepidico's poor financial position and low lithium prices, the project has been inactive since 2022. However, with increasing demand for lithium, the project has attracted significant interest from other companies, including Canadian firm ILC Critical Minerals.
ACE's majority shareholder, John Wisbey, is also the chairperson and majority shareholder of ILC Critical Minerals, which had previously attempted to acquire the Karibib project. Wisbey stated that ACE was set up by shareholders who believe in the project's potential and are willing to invest their own money. He emphasized that the company's Namibian ownership is currently 1%, but this adds to the 20% local ownership in Namibia.
The proposed sale has sparked concerns over foreign control, with Otwathika Investment Holdings, a Namibian company, lodging an objection against the sale in July. The objection, prepared by lawyer Richard Metcalfe, alleges that ACE is a foreign company wholly owned by foreigners seeking to maintain total control of the lithium mine. Otwathika is currently not involved in the mining industry but is in advanced stages of procuring strategic partners.
Wisbey responded to concerns about the company's funding, stating that ACE has several capital providers interested in the project after NaCC approval. He emphasized that the company believes in the project and the country, intending to make it work. The NaCC began investigating the proposed sale in April, and the outcome remains uncertain.
The Karibib lithium project has significant potential, but its development has been delayed due to Lepidico's financial difficulties. ACE's acquisition of the project could bring new investment and expertise, but concerns over foreign control and funding remain. The NaCC's decision on the proposed sale will have a significant impact on the project's future.
The Namibian government and industry stakeholders will be closely watching the NaCC's decision on the proposed sale. The country's mining sector is a significant contributor to its economy, and the development of the Karibib lithium project could have a positive impact on the country's growth and employment. The project's future remains uncertain, with several interested parties and concerns over foreign control and funding.
Key points
- - The proposed sale of the Karibib lithium project to African Critical Elements has raised concerns over foreign ownership and control. - The project's development has been delayed due to Lepidico's financial difficulties, and ACE's acquisition could bring new investment and expertise. - The NaCC's decision on the proposed sale will have a significant impact on the project's future and the Namibian mining sector.
