Celsius writes down Opuwo Cobalt Project value by N$75m

ASX-listed Celsius Resources has written down the value of its Opuwo Cobalt Project in northwest Namibia by AU$6.1 million (approximately N$75 million), citing persistent market headwinds and uncertainty around development timelines. The impairment, disclosed in the company’s June 2025 quarterly report, reflects broader challenges facing junior miners in the cobalt sector amid weak prices and tightening capital markets.Being sold In a parallel move to refocus its strategic priorities, Celsius has agreed to sell 100% of its Namibian assets, including the Opuwo Cobalt Project, to an undisclosed international group. The transaction, announced in late July 2025, marks a significant pivot for the company and effectively ends its direct involvement in Namibia’s mining sector. The buyer is expected to take over all development obligations, including environmental, regulatory, and community engagement responsibilities.Located near the town of Opuwo in the Kunene Region, the project is regarded as one of Africa’s largest undeveloped primary cobalt assets outside the Democratic Republic of Congo (DRC). Opuwo hosts a JORC-compliant resource of 225.5 million tonnes grading 0.12% cobalt, 0.43% copper, and 0.54% zinc, with over 260 000 tonnes of contained cobalt. It's large, shallow, sediment-hosted deposit suited to open-pit mining, and unlike many operations in the DRC, Opuwo is a standalone cobalt project, not a by-product of copper or platinum production.Global cobalt market instability The DRC accounts for more than 70% of the global cobalt supply, with mega-deposits such as Tenke Fungurume, Mutanda, and Kamoa-Kakula dominating the landscape. But concerns around governance, human rights, and supply chain risks have prompted end-users and investors to seek alternative sources.Opuwo offers a potential solution, situated in a jurisdiction known for its political stability, transparent permitting processes, and reliable infrastructure. Across the rest of Africa, few primary cobalt projects rival Opuwo in size or maturity. Zambia hosts several copper-cobalt deposits, but most of these produce cobalt as a secondary byproduct. Morocco’s Bou Azzer mine contributes modest volumes. In South Africa, cobalt is mainly recovered from platinum mining operations.Local ownership With its significant resource and project independence, Opuwo stands out as arguably the second-largest primary cobalt project in Africa after the DRC’s major operations.On the international stage, Opuwo’s scale places it alongside other emerging cobalt projects such as Jervois Global’s Idaho Cobalt Operations in the USA, Giga Metals’ Turnagain project in Canada, and Fortune Minerals’ Nico project, also in Canada. Many of these remain in early development or struggle with obtaining permits and securing financing. Opuwo has completed a scoping study and several metallurgical test phases; however, Celsius has indicated that further testwork and updated economics are needed before advancing to a complete feasibility study.The company had been evaluating strategic partnerships, offtake agreements, and financing pathways. Shift in directionHowever, the decision to sell reflects a shift in direction, possibly influenced by the mounting costs of long-term project development and the changing global cobalt landscape.The future of Opuwo will also be shaped by Namibia’s proposed increase in local ownership requirements, from the current 51% to 60% by 2030. The move is part of the government’s broader resource nationalism and empowerment agenda, outlined under the sixth National Development Plan (NDP6).Any future development at Opuwo will need to align with these evolving regulations, potentially affecting joint venture structures, community shareholding models, and investment strategies.The AU$6.1 million write-down and sale of the Namibian portfolio underscore the uncertainty surrounding junior-led cobalt development, but Opuwo remains a strategic asset with long-term relevance.

Celsius writes down Opuwo Cobalt Project value by N$75m

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Republikein 2025-10-31

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Celsius writes down Opuwo Cobalt Project value by N$75m

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Republikein 2025-10-31

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