Mines and energy: Local ownership should start with Govt

Minister of mines and energy Tom Alweendo has strongly advocated increased local ownership and state participation in the country’s mining and energy sector.

He was speaking at the opening of a four-day parliamentary workshop on maximising mining and energy potential at Swakopmund yesterday.

“There is a growing public voice criticising the fact that the exploitation of our mineral and petroleum resources is dominated by foreigners.

“The status quo is untenable, it is indefensible,” he said.

The minister proposed that the state should own a minimum equity percentage in all mining companies and petroleum production.

“We are making a case that local ownership must start with the state, in whose ownership our natural resources is vested,” Alweendo said.

To encourage further local ownership, he proposed the idea of a state-funded minerals exploration fund to support local entrepreneurs keen on investing in the mining sector.

The minister highlighted Namibia’s potential as an ideal destination for green hydrogen development.

The country’s favourable conditions would enable the production and export of green hydrogen, green ammonia, e-methanol, and synthetic kerosene at highly competitive costs, he said.

Alweendo urged inclusivity and transparency, and a crackdown on corruption as the country progresses towards a more sustainable and inclusive energy future.

“Among the practical challenges that have the potential to derail the effective management of our natural resources is corruption,” he said.

He concluded by committing his ministry to the good stewardship of Namibia’s resources and said he hoped the workshop would deliver concrete strategies to maximise the country’s mining and energy potential.

Erongo governor Neville Andre highlighted the significance of the mining sector to the Namibian economy, noting that it contributes about 11,1% to the country’s gross domestic product.

He said the Erongo region, rich in marine resources and abundant in a variety of minerals, plays a crucial role in these sectors.

Andre underscored the necessity for practical and implementable outcomes from the workshop, which aims to review the policy, legal, and regulatory framework governing the energy, mining, and oil sectors in Namibia.

The workshop will also explore the effectiveness of current governance mechanisms, including oversight, monitoring and enforcement.

Critical to the discussions is the environmental and social impacts of mining, energy and oil activities in Namibia, along with opportunities for improving sector governance and the sustainable management of natural resources.