The C$11 million work program tests whether Lofdal can produce separated rare earth carbonates in Namibia rather than exporting raw concentrate, matching government beneficiation goals.
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Namibia Critical Metals has approved about C$11 million in additional funding for the Lofdal heavy rare earth project, pushing the definitive feasibility study into a phase that tests whether the site can produce separated carbonate products inside Namibia rather than shipping raw concentrate abroad.
The joint management committee overseeing Lofdal signed off on the next work tranche and awarded the first major metallurgical contracts to SGS Canada, one of the bigger testing and process development firms in the sector. The company will ship roughly 30 tonnes of representative ore through continuous pilot-scale flotation, then run an integrated hydrometallurgical pilot plant covering acid bake, leaching, impurity removal, solvent extraction and precipitation.
What sets this program apart from conventional rare earth project work is the downstream ambition. Most operations export mineral concentrate for processing elsewhere. Lofdal's expanded study will evaluate production of separate light rare earth carbonate and heavy rare earth carbonate products through integrated hydrometallurgical processing inside Namibia. That means higher-value intermediates and a technical foundation for future downstream facilities in-country, the company said.
President and CEO Darrin Campbell said the contracts mark the start of full DFS execution for the expanded "Lofdal 2B-4" project and reflect the continued commitment of Namibia Critical Metals, JOGMEC and Toyota Tsusho. The approval funds a comprehensive metallurgical program meant to de-risk the processing side while generating engineering data for detailed design and project financing, he said.
The company framed the strategy as a direct match with the Namibian government's push for domestic beneficiation of critical minerals. Lofdal is one of the few advanced heavy rare earth projects globally and among the largest known undeveloped sources of dysprosium, terbium and yttrium – elements essential for electric vehicles, renewable energy tech, advanced electronics and defence applications.
A variability testing program covering 98 representative samples from across the deposit will refine geometallurgical domains and build predictive processing models for mine planning and long-term forecasting. The pilot solvent extraction work will optimize separation of light and heavy elements, targeting lower reagent consumption and better operating economics.
JOGMEC, the Japanese government agency that backs strategic resource supply, has already earned a 40% interest in Lofdal by hitting the C$10 million spending mark. Total funding to date is C$19.97 million of the C$23 million earn-in required to reach 50%. JOGMEC can also buy another 1% for C$5 million and has first right of refusal to fully fund the project through commercial production and purchase all output at market prices.
Toyota Tsusho, the trading arm of the Toyota Group, is the other major strategic partner. The company operates across metals, energy, chemicals and advanced materials and has been building supply chains for critical minerals used in automotive electrification and renewable energy systems.
SGS has been a technical partner on Lofdal through earlier phases. The current contract suite is among the most comprehensive metallurgical campaigns ever run on the project, the company said.
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