Namibia restores Chinese firm’s lithium export permit despite ongoing corruption investigation

Chinese company’s lithium ore export permit has been restored by Namibia’s mining authority despite an ongoing investigation into alleged corruption.

In October, Namibia banned Xinfeng Investments from exporting lithium ore, which is used in the manufacture of electric batteries and related products, until the investigation by the country’s Anti-Corruption Commission (ACC) was finished. But in a surprise turn-around, Namibian mining authorities have backtracked on the decision to cancel the permit. The Chinese company is accused of buying a mining license from a man who had acquired it illegally while the true owner was hospitalized with a brain injury. According to media reports, the latest decision was necessitated by the fact Xinfeng already had a vessel en route to Walvis Bay, Namibia’s harbor town, before the export permit was canceled.

ACC was reportedly investigating allegations of bribery and corruption against certain officials from Ministry of Mines and Energy, including the former commissioner of mines and current minister of mines and energy. The officials have been accused of taking bribes to facilitate the transfer of the license. The Chinese lithium permit investigation was given as the reason for the removal of Erasmus Shivolo as mining commissioner and Muyamba’s abrupt resignation last month. Mining remains the single biggest contributor to Namibia’s gross domestic product and accounts for about 8% of the country’s foreign exchange earnings.