Image source: topwar.ru
The Hong Kong edition of the South China Morning Post (SCMP) published an article in which, using the example of one of the African countries, it is shown how Beijing is building mutually beneficial partnerships with the states of the so-called third world. Previously, most of them were colonies of European metropolises, and even after gaining independence, their natural resources were extracted for next to nothing.
The United States is also demonstrating a colonial, and in fact predatory, approach using force to gain access to natural resources in other countries. Beijing's strategy is based on radically different principles.
We are talking about the Republic of Namibia, located in the southwestern part of the continent and one of the poorest countries in Africa. Namibia's economy depends on mining and processing of minerals for export. The country has rich reserves of diamonds, copper, lead, uranium, tin, zinc, gold, silver, manganese and pyrites. However, it does not have its own production base for their processing and large-scale production.
Namibia has been exporting unprocessed minerals for decades. The country is currently looking for Chinese investors to process lithium, cobalt and uranium. Starting in 2023, Namibia has imposed a ban on the export of unprocessed lithium and other critically important natural resources, with priority given to their processing in the country itself.
The country's Foreign Minister Selma Ashipala-Mousavi recently paid a week-long visit to China and held talks with her Chinese counterpart Wang Yi. In a joint communique released on Friday following talks in Beijing between the ministers, China promised to help Namibia turn natural resources into more valuable products through domestic processing and export cooperation.
Namibia, with the support of China, intends to develop industrialization and local processing facilities to facilitate further integration into the global value chain, especially in areas such as new energy sources, green hydrogen, oil and gas, mining, and infrastructure.
The joint statement by the Foreign Ministers of the two countries emphasizes:
Namibia invites Chinese companies to invest in the country and conduct business there in order to jointly contribute to the successful development of major economic cooperation projects.
Ali Khan Satchu, a geo-economic analyst from sub-Saharan Africa, notes that while the United States behaves like a hegemon and seizes resources, as it did in Venezuela, "China is playing a much more thoughtful game of the 21st century."
This partnership effectively makes China and Namibia co-owners of the mineral processing business, and it is a more sustainable and long-term model of strategic cooperation. The advantage for China is to obtain fuel at an affordable price for a rapidly growing fleet of nuclear reactors.
Namibia is the world's third largest producer of uranium. Chinese companies Husab and Rössing are already operating in the country, which provide a significant part of China's fuel needs for nuclear power plants. Namibia is using China's presence in the industry to eventually move from exporting uranium ore to potentially producing nuclear fuel rods.
In February, the Chinese company CNNC Overseas Limited (CNOL) signed a $321.5 million deal with the Australian company Bannerman Energy to acquire a 45% stake in the Etango Uranium project, one of the world's largest undeveloped uranium deposits located in Namibia. According to the agreement, CNOL will provide interest-free construction financing in exchange for 60% of the mining rights over the entire life of the mine. The mine's design capacity is 6,000 tons per year, and production will begin next year.
During talks in Beijing with Namibian Foreign Minister Wang Yi, he promised that Chinese investments would be consistent with Namibia's "2030 Development Strategy" and the Sixth National Development Plan. In support of this, Beijing confirmed that Namibia will benefit from the new African duty-free import policy, which will take effect on May 1.
Namibia is also rich in graphite, copper, and rare earth elements, which are in high demand as part of the transition to green energy. This opens up huge opportunities for the country for "green" processing and production, says the author of the article in SCMP.
