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The proposed takeover of Namibia’s Karibib lithium project is putting the spotlight on how much local ownership will remain in a project that could gain renewed momentum as lithium demand recovers. Just 1% of Britain-based African Critical Elements (ACE), the company seeking approval to acquire the project, is currently owned by Namibians.
ACE applied in April to the Namibian Competition Commission (NaCC) to acquire shares in the company that owns the Karibib lithium project. The ACE majority shareholder John Wisbey told The Namibian that the company was established by shareholders who believe in the project’s potential and are prepared to invest their own capital. “ACE has ownership from a number of its directors and employees from various countries who all believe in the project and are willing to put their own money at risk. This Namibian ownership at ACE group level is 1% at present but it adds to the 20% local ownership in Namibia,” said Wisbey.
The project is currently 80% owned by Lepidico Canada, a subsidiary of Australian company Lepidico, which entered liquidation last year. The remaining 20% is held by Huni Urib, a Namibian company that sold 80% of the project to Canadian company Desert Lion in 2016. Operations at Karibib have been suspended since 2022, with Lepidico’s financial difficulties and weak lithium prices contributing to the prolonged inactivity. A recovery in lithium demand has since renewed interest in the project, with Canadian company ILC Critical Minerals also among those seeking to secure an interest in the asset.
Wisbey, who is Chairperson and majority shareholder of ILC, said he was disappointed after the company failed to acquire the Karibib project earlier this year. He said the formation of ACE provided an alternative route to prevent the collapse of Lepidico Canada and preserve the project. “To avoid Lepidico Canada and Lepidico Namibia going into liquidation with consequent shareholder loss of all investment, a number of us decided to do the transaction in a different way. We set up ACE then bought Lepidico Canada and injected working capital for its immediate needs including salaries,” explained Wisbey.
Wisbey said there is no funding link between ACE and ILC. He added, “They are independent of each other but have common directors and shareholders.” Questions over ACE’s financial capacity have also emerged as the transaction undergoes regulatory scrutiny. Wisbey said several capital providers are interested in the project, subject to NaCC approval. “We believe very much in the project and in the country and we intend to make it work. No one invests this amount of upfront capital without planning for the next stage, at least at a high level,” noted Wisbey.
The proposed transaction has drawn opposition from Otwathika Investment Holdings, a Namibian company that lodged an objection with NaCC in July, citing concerns over foreign ownership and control of the lithium project. “The proposed merger is merely a contrived scheme to ensure foreign control of lithium mining in Namibia. It is obvious that African Critical Elements Ltd is a foreign company wholly owned by foreigners who seek to hold and maintain a total control of the lithium mine. Otwathika is not currently involved in mining but says it is “in the advanced stage of procuring strategic partners in order to enter the industry,” stated the objection, prepared by lawyer Richard Metcalfe.
The investment group also argues that ACE lacks sufficient funding to develop and operate the project, warning that approval of the transaction could delay development while the company raises capital. The objection concluded, “Approval of the merger will delay the development of the lithium mine whilst African Critical Elements Limited seeks to raise capital. If a Namibian company is given this opportunity the raising of capital will be an easy exercise and foreign dominance and control will be negated.”
The ownership dispute comes as Namibia seeks to position itself as a participant in the development of its critical mineral resources, raising broader questions over how foreign capital, local ownership and project development will be balanced as interest in lithium and other strategic minerals grows. NaCC Investigator, Leena Shikongo said that the competition watchdog preliminarily intends to approve the sale.
