Mining sector contributes N$6,68b in taxes

The Chamber of Mines says the sector contributed about N$6,86 billion in royalties and taxes to treasury last year.

Speaking at the annual general meeting on Wednesday, the chamber’s president, Zebra Kasete, told stakeholders the extractive industry saw its turnover reaching N$51,57 billion in 2023.

This is an increase of 36% from N$37,96 billion recorded in 2022.

He said the tax and royalty contribution to the treasury grew to N$6,86 billion from N$4,4 billion the previous year, an increase of 55,9%.
Kaseta reiterated that the global shift towards renewable energy has created numerous opportunities for Namibia.

He said the potential in green energy spans from green energy to potential growth for the mining industry.

“Western nations are increasingly looking to Namibia to secure critical mineral supplies for their energy transition objectives, as the country is endowed with critical minerals, however, further research and development are needed to optimise processing techniques, particularly for rare earths,” he said.

Kasete added that the chamber is actively supporting these efforts through an agreement between the European Union and Namibia on critical raw minerals, thereby facilitating investments in these areas.

“Nuclear power is emerging as a prominent and sustainable source of baseload energy worldwide. Over the past two years, we have witnessed a steady rise in the uranium price driven by the gradual depletion of utility stockpiles and stagnant supply levels,” he said.

“We anticipate heightened production at key uranium mines such as Rössing and Husab, alongside the resumption of operations at Langer Heinrich and the development of two new uranium mining projects, namely Bannerman’s Etango project and Deep Yellow’s Tumas project.”

Kasete said the mining industry is the backbone of the Namibian economy as it continues contributing to government revenue, workers’ salaries and services to local entrepreneurs.

Presenting the annual review for 2023, Kasete said the main drivers of the mining sector were gold, uranium and diamonds.

“Gold production reached 10 tonnes, recording an increase of 31%, while uranium production reached 8,2 tonnes, an increase of 21%. Water supply challenges pushed uranium production down, although prices continued to firm,” he said.

According to Kasete, the industry also welcomes the development of Namibia’s third gold mine (Twin Hills), which is scheduled to come into production within the next two years, marking a significant milestone akin to the simultaneous development of the Tschudi, Husab and Otjikoto mines a decade ago.

He said the chamber remains committed to advocating the finalisation of the draft minerals bill and participating in discussions regarding the government’s proposal to introduce mandatory state free shareholding in mines.

Kasete said the chamber supports the Cabinet directive of 7 June 2023 prohibiting the export of unprocessed critical minerals such as lithium ore, cobalt, manganese, graphite and rare earths.

“It is necessary for the government to control and regulate the export of unprocessed critical minerals to support job creation, value addition and extract the maximum value from mining,” he said.

According to the chamber, the mining industry recorded zero fatalities in 2023 and an improved overall safety performance.

Mines and energy minister Tom Alweendo called for more dialogue with mining companies to finalise outstanding legislation, saying if need be, sections can be amended to prevent further delays.

He called for value addition in the sector, as well as a policy on local content, as is the case with the oil and gas sector.

“A database indicating the use and services consumed in the mining sector had been finalised and launched at the last mining expo. This enables local entrepreneurs to be aware of what is being used by the mining sector and when it was sourced outside the country, then there is room for locals to supply,” he said.

The minister said the application for licences online was still being developed, but the ministry was accepting applications. – email: matthew@namibian.com.na