ACE wants to revive dormant Karibib lithium project

KARIBIB – African Critical Elements (ACE) is seeking approval for a transaction aimed at reviving the Karibib lithium project, which has remained without production for years.

The proposed acquisition involving ACE and Lepidico Canada Incorporated came under discussions during a stakeholder engagement by the Namibian Competition Commission (NaCC) on Thursday.

It forms part of the commission’s investigation into the transaction, while the parties invovled in the merger as well as stakeholders deliberate information before a final decision is made.

Speaking on behalf of the merger, Aidan Scallan said ACE stepped in after Lepidico Limited, the Australian parent company, experienced severe financial difficulties following the collapse in global lithium prices. This resulted in Lepidico Limited entering a voluntary administration in December 2024 and was later placed into liquidation in May 2025. Scallan said this left the Karibib project unfunded, at risk of insolvency and facing the possible loss of its mining licences.

“ACE stepped in to rescue the stranded assets,” he explained.

According to Scallan, ACE acquired 100% of the issued share capital of Lepidico Canada, which indirectly controls Lepidico Chemicals Namibia (LCN). LCN holds the mining licences associated with the Karibib project.

Scallan said ACE has already injected tens of millions of Namibian dollars into the country to cover salaries, employment taxes, operating costs and initial drilling.

Adding that said the investment provided a possible pathway to bring the dormant project into production.

However, NaCC senior legal analyst in the Mergers and Acquisitions Division, Leena Shikongo, said the project remains at the pre-development stage and is currently only involved in the exploration and evaluation of lithium, rubidium and caesium deposits. “It is not yet producing or selling any minerals,” she said. Shikongo added that the mine has been under care and maintenance since 2022.

According to her, the commission’s assessment shows that there has been no operations taking place at the mine since the mining licence was issued on 13 June 2018.

Adding that one of the conditions attached to the licence required operations to commence and continue without interruption or delays within one month from the date it was issued.

Hence, she says the commission considers the lack of operations as non-compliance with the  licence condition.

She explained that ACE intends to inject capital and management expertise into the project to revive it and develop the Namibian operation into a successful enterprise.

The company also intends to finance the resumption of drilling, continue exploration activities and arrange funding for on-site processing of minerals. However, Shikongo said the commission has concerns about the funding and operational capacity of ACE to move the project forward.

“From 2018 to date, it’s still at the same stage, so there seems to not have been progress,” she said.  According to Shikongo, one of the issues being considered is whether the proposed transaction will eventually lead to the successful development and operation of the Karibib project. Despite these concerns, the Commission’s preliminary assessment found that the transaction does not raise competition concerns.  The commission is yet to make a final decision on the transaction.  – edeklerk@nepc.com.na

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