Xinfeng is accused of engaging in unauthorized lithium extraction, which exceeds the scope of its permit. Xinfeng holds an exclusive prospect license through a joint venture with Orange River Exploration and Mining CC.

Key Takeaways:

• Xinfeng Investments has been accused of conducting unauthorized lithium mining activities in the Erongo region of Namibia.  
  
• It allegedly exceeded its permit's scope by engaging in full-scale mining operations.  
  
• Namibian Ministry of Mines and Energy has ordered an immediate halt to all mining operations at the site.
  
• The ministry has also enforced police investigation. 
  

Namibia’s Ministry of Mines and Energy has launched an investigation into Xinfeng Investments (Pty) Ltd. for allegedly conducting illegal lithium mining activities in the Erongo region, an area rich in lithium deposits. The ministry accuses the company, which holds an exclusive prospecting license through a joint venture with Orange River Exploration and Mining CC, of exceeding the scope of its permit by engaging in unauthorized lithium extraction.

The ministry’s concerns were triggered by an unannounced inspection on November 16, which revealed that mining operations were underway at a site near Uis that was licensed only for exploration. Full-scale mining activities, including the extraction of lithium, are not authorized under the terms of the exploration permit.

According to the ministry’s statement issued on Wednesday, Xinfeng’s management admitted during meetings in early December that its operations had indeed exceeded the approved scope of the license. This admission has led to further scrutiny of the company’s actions, which allegedly involved environmental damage and the disturbing of ancestral graves—incidents that have sparked concerns among local communities.

As a result of these findings, the Ministry of Mines and Energy ordered an immediate halt to all mining operations at the site and referred the case to local police for further investigation. Authorities are now working to determine the full extent of the violations and potential environmental and cultural damages caused by the illegal activities.

The discovery comes at a time of heightened global interest in lithium, a key mineral to produce batteries used in mobile phones, electric vehicles, and other technologies. Namibia, home to Africa’s largest lithium reserves after the Democratic Republic of Congo, Mali, and Zimbabwe, has seen a surge in investment in its mining sector, particularly from Chinese companies. The country’s abundant lithium resources are increasingly seen as crucial for the global transition to a clean energy, and any disruptions or illegal activities in this sector are likely to attract significant international attention.

The Erongo region has become a hotspot for lithium exploration and mining, with several companies competing for access to the rich deposits found there. The ministry’s actions against Xinfeng underscore the growing scrutiny of mining operations in the country, especially as the demand for lithium continues to rise. Industry forecasts suggest that lithium production in Africa could increase more than 30-fold from 2022 levels by 2027, driven in part by the global push for electric vehicles and renewable energy technologies.