By Staff Writer
WINDHOEK, March 15 — The Namibian court has overturned the decision of the country’s Minister not to renew the prospecting license of Deep-South Resources for the Haib copper project. The Canadian mining company had challenged the decision in the Namibian High Court, which ruled that no permits could be granted over the same area until further notice. Deep-South Resources invested over CAD2m ($1.6m) in the Haib project from 2017 to 2021. In June 2021, the Namibian Minister declined to renew the company’s license, citing its inability to advance to the pre-feasibility stage and complete the proposed drilling program as planned.
The Canadian miner acquired the project from Teck Resources in 2017. Deep-South Resources had proposed a feasibility study worth CAD7.1m ($5.7m) and a pilot plant worth CAD25.5m ($20.6m) for the project. In December 2021, the company updated the preliminary economic assessment and put Haib’s after-tax NPV at $957m and IRR at 29.7% using a $3 per pound copper price. The project envisioned a 24-year mine producing 35,332 tonnes per annum of copper cathodes and 51,080tpa copper sulphate.
The court ruling requires the Minister to resume the license renewal application process and arrive at a new decision. The court noted that the facts presented by Deep-South subsidiary Haib Minerals should not have been ignored in the evaluation process. The court also ordered the ministry to pay the legal costs of Deep-South’s subsidiary Haib Minerals. Deep-South Resources CEO Pierre Leveille welcomed the verdict and expressed confidence in creating a new working relationship with the Minister and the new Mining Commissioner.
The Minister and the Mining Commissioner have the right to appeal the decision in the Supreme Court of Namibia within 21 court days from the date of the judgment. – Namibia Daily News
