Staff Reporter
DORBABIS, Nov. 1 — Lodestone Namibia, a mining company with plans to develop the Dordabis high-grade iron ore project in Namibia, is on the cusp of securing a financing solution for the project, according to company CEO Carsten Mosch.
The Dordabis project holds significant promise, with the potential to produce up to 2 million tonnes per year (tpa) of high-grade iron ore concentrates. Additionally, it has the capacity for expansion to 4 million tpa, a potential resource that could be tapped for the next two to three decades. Lodestone has already invested $20 million in conducting two bankable feasibility studies for the project. The first study focused on the production of high-grade 70.5 percent magnetite suitable for industrial use, while the second study explored the export potential of up to 2 million tonnes of high-grade iron ore.
Mosch revealed during a presentation to the EU Namibia Business Forum that Lodestone has shifted its initial plan of exporting the ore. The company now aims to process it downstream within Namibia. Lodestone is currently evaluating three options for advancing the project:
1. **Financing a 750,000 tpa facility:** This option has already secured all necessary environmental licenses, and a comprehensive bankable feasibility study has been completed.
2. **Partnering with Anglo American:** The company is considering a collaboration with Anglo American, a major player in the iron ore market, to directly scale up the project to 2 million tpa. This would require a capital investment of approximately $250 million.
3. **Exploring the Hot Briquetted Iron (HBI) project:** Lodestone is contemplating the completion of a bankable feasibility study for a $1.5-$2 billion HBI project, in partnership with steel companies or local green steel and hydrogen producers. HBI is a high-purity iron product that can substitute scrap metal in electric arc furnaces, offering a cleaner and more sustainable alternative to traditional steelmaking processes.
In addition to these strategic considerations, Mosch noted that Lodestone has already secured a draft rail transport agreement with Transnamib, Namibia’s national railway company. The company is actively collaborating with the Namibian government to optimize logistical solutions at the harbour.
Lodestone is seeking support from the steel industry for iron ore processing and from the Namibian government for land access to expand the resource base from 88 million tonnes to 350 million tonnes. Mosch is confident in the company’s ability to reach this goal based on the magnetic anomaly in the area.
The development of the Dordabis iron ore project carries significant potential benefits for the Namibian economy. It is expected to create job opportunities, generate tax revenue, and attract foreign investments. Moreover, the project will contribute to reducing Namibia’s dependence on steel and other iron product imports, promoting self-sufficiency and economic growth within the nation.
