A local copper mine is set to be tokenised on a blockchain platform, opening up fractional ownership and new investment opportunities.
Damrev, which leverages the stellar blockchain to transform traditional assets into digital tokens, has secured a N$6-billion deal.
Chief executive Duane Herholdt says the project’s 24-month implementation time frame highlights its ambitious yet achievable nature, positioning it as a potential game changer for both sectors.
“A landmark agreement between Damrev, a leading real-world asset (RWA) tokenization company and a Namibian copper mine valued at US$330 million marks a significant step forward for both the mining and blockchain industries in Africa,” he says.
Herholdt says the groundbreaking project will see the mine’s assets tokenised on a secure blockchain platform, enabling fractional ownership, enhanced liquidity and increased transparency.
“We are excited to embark on this transformative journey with our Namibian partners,” he says.
Herholdt says the project not only exemplifies the immense potential of tokenisation in unlocking value from real-world assets, but also solidifies Damrev’s position as a pioneer in African blockchain innovation.
“The tokenisation process involves meticulously converting the copper mine’s assets into digital tokens. These tokens represent fractional ownership of the mine, enabling investors to seamlessly buy, sell and trade them on the secure blockchain platform,” he says.
He says the innovative approach is expected to attract a diverse pool of investors.
Herholdt says the project has the potential to significantly enhance liquidity for the mine.
“The mine itself stands to gain from this partnership through increased operational efficiency and the unlocking of new funding avenues,” he says.
Herholdt emphasises the company’s commitment to collaborating with local stakeholders throughout the two-year implementation phase.
He says a press conference revealing the copper mine’s name is expected to take place in the next month.
The Bank of Namibia’s stance on the project’s regulatory implications is yet to be determined.
“This groundbreaking project in Namibia signifies a potential paradigm shift within the African mining sector,” Herholdt says.
He believes by embracing blockchain technology, the project paves the way for increased investment opportunities, enhanced industry transparency and a more efficient future for the mining landscape.
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