Namibia Critical Metals Inc. announce that it entered into a Memorandum of Understanding (MoU) to conduct a feasibility study for a rare earth separation plant in Namibia. The proposed separation plant aims at producing rare earth metals which can be directly used in the production of permanent magnets for electric vehicles and wind turbines. The recent Preliminary Economic Assessment of the Company's expanded project "Lofdal 2B-4" foresees an annual production of about 2,000 t of mixed rare earth oxides (MREO) over 16 years containing an average of about 117 tonnes dysprosium oxide and 17.5 tonnes terbium oxide, the most valuable rare earth elements.

Separation of the rare earth elements (REE) is globally a major bottleneck for a de-risked supply chain for those strategic critical raw materials. While several separation technologies are available, separation facilities need a significant upfront capital expenditure, a steady raw material supply and a critical mass to operate viably. Therefore, the initiative was taken by the three advanced rare earth project developers in Namibia to jointly embark on a feasibility study for such a separation plant in Namibia.

The parties of the MoU agreed to explore and evaluate the technical potential and viability of developing a rare earth element (REE) separation facility to extract and separate REE from concentrates of mixed rare earth oxides produced in Namibia and possibly for rare earth concentrates and semi-products from outside of Namibia. Key elements of the feasibility study are the potential supply and specifics of REE concentrates from Namibian mines and other sources, potential locations for the facility, infrastructure requirements and all regulatory and environmentally considerations.