A Canadian company, Namibia Critical Metals Inc. (NMI), has released the results of a pre-feasibility study (PFS) for its Lofdal Heavy Rare Earths Project (Lofdal) in Namibia, highlighting the mine's strong economics.
The deposit, said NMI (TSXV: NMI OTCQ: NMREF) in a release on December 3, has the potential for significant production of dysprosium (Dy), terbium (Tb) and yttrium (Y).
The PFS presents a base case, representing a conservative but realistic post-normalisation scenario, assuming partial easing of China’s recent export bottlenecks and a divergent case, consistent with consensus divergence pricing logic and the geopolitical reality of prolonged export controls, slow non-Chinese separation build-out and rising strategic demand from original equipment manufacturers (OEMs).
In the base case, the project is expected to yield a pre-tax internal rate of return (IRR) of 21.7% and a net present value (NPV) of $389mn (using a discount rate of 5% in all cases), and an after-tax IRR of 19% and a NPV of $276mn.
In the divergent case, Lofdal, which NMI is developing jointly with the Japan Organisation for Metals and Energy Security, is anticipated to yield a pre-tax IRR of 44.1% and a NPV of $1.2bn, and an after-tax IRR of 34.8% and a NPV of $748mn.
Base case cumulative cash flows over the 13-year mine life are $709mn pre-tax and $513mn after-tax, and a divergent case $2bn pre-tax and $1.2bn after-tax.
“Lofdal is well positioned as one of the very few advanced major Dy/Tb- and Y projects outside China, with a supportive jurisdiction, a mining license, fully environmentally permitted, an excellent relationship with the communities and a key strategic JV partner (JOGMEC),” commented NMI president Darrin Campbell.
“The project’s economic case is now underpinned by three value pillars: Dy/Tb high-temperature magnet demand, Yttrium demand from aerospace, semiconductors and turbine industry and Nd/Pr magnet demand. This diversified critical material exposure increases the strategic attractiveness of Lofdal for OEMs and governments.”
© 2025 bne IntelliNews, source Magazine