Ministerial position on the alleged illegal mining operations by Xinfeng

WINDHOEK, 18 December 2024 – The Ministry of Mines and Energy (MME) , as the custodian and regulator of Namibia’s mineral and energy resources has taken note of the public concerns raised in various media reports about the increasingly unbecoming mining practices by Xinfeng Investments (Pty) Ltd.Xinfeng Investments  is a Chinese mining company which is a majority shareholder in  Orange  River Exploration and Mining CC, a holder and operator of an Exclusive Prospecting Licence (EPL) 8397 granted under the Minerals (Prospecting and Mining Act) , Act No. 33 of 1992, since August 2023.

The concerns raised by the public, particularly the community of Uis Town in Erongo Region are, inter a/ia, in respect of alleged illegal mining activities by Xinfeng Investments Pty Ltd within the reported EPL area, harmful environmental effects due to the alleged mining activities and desecration of ancestral graves. These pertinent public concerns did not go unnoticed by the Ministry of Mines and Energy. As such, the Ministry, wishes to respond to, and factually inform the Namibian public as follows:-

BACKGROUND

The Exclusive Prospecting Licence Number 8397 was granted to Orange River Exploration and Mining CC, a Joint Venture Company between Longfire Investment which holds 15% and Xinfeng Investment (Pty) Ltd. The latter owns 85% in Orange River Exploration and Mining CC. This EPL of concern is located in the Uis area in Erongo Region.

Orange River Exploration and Mining CC was granted EPL 8397 to explore for dimension stones, base and rare metals, industrial minerals and precious metals, in line with the national objectives to attract  productive  investments  in the  mining  sector. The Ministry wishes to underscore that the licence granted to Orange River Exploration and Mining CC is for prospecting to assess the potential for commerc ial mining.The main activity to be carried out on the EPL is to conduct exploration work as opposed to Mining activities.

All official correspondence must be addressed to the Executive  Director

Further to the exploration licence granted as stated above, Orange River Exploration and Mining CC submitted the application for a Mining Licence (ML 257) in December 2023 . This application is still pending consideration and decision by the Ministry.

FINDINGS ON THE INVESTIGATION INTO ALLEGATIONS OF ILLEGAL MINING  ACTIVITIES BY XINFENG

Triggered by prior inspections and the concerns raised, the Office of the Mining Commissioner made an unannounced inspection visit to the site to  establish  the allegations of illegal mining activities on 1 6 November 2024. The team discovered and confirmed the prevalence of mining activities at a  site  where  only  exploration operations  were  authorized.  In response  to this finding, the Ministry, through  the  Office of the Mining Commissioner,  directed  for  immediate  cessation  of  all mining  operations by the  company  in the  EPL 8397 area.

Furthermore, the executive management of Xinfeng was summoned to the Ministry to account for what amounted to illegal mining activities by the company in the Exploration Area. At these engagement sessions, which were held on the 4th and 5th December 2024 at the Ministry, the directors of Xinfeng conceded to the undertaking of unauthorized mining activities relative to the scope and conditions of the Exploration Licence.

Unauthorized mining by an exploration licence holder constitutes violation of licence conditions and is subject to penalties. In this case, the violation warrants an investigation by law enforcement. Accordingly, the Mining Commissioner has reported to, and opened a case of the illegal mining to the Namibian Police, and investigations  are underway.

MINISTERIAL  POSITION ON ALLEGATIONS  OF ILLEGAL MINING

At the same time, the Ministry has already invoked some of the penalty measures provided for in terms of Section 3 ( 1 ) of the Minerals (Prospecting and Mining) Act which deals with the conduct of unauthorized mining activities, pending the conclusion  of the investigations.

On account of the aforegoing, the Ministry wishes to inform the Namibian public, that the following response actions have been promptly undertaken:-

(i)         conducting  a prompt inspection  of  the alleged  activities  at the site,

( ii)        holding   the   executive   management   of   Xinfeng   Investment   (Pty)   Ltd accountable  for  its  action  and inaction,

• ordering immediate cessation of all mining activities by Xinfeng Investment Pty Ltd and monitoring the activities closely,
• opening the police case for the observed illegal mining activities, and
• collaborating     with    law    enforcement      authorities     for     proportionate investigation on the unauthorised activities.

The Ministry assures the public that this incident is receiving utmost attention. Based on the investigation findings, appropriate and proportionate actions will be taken for any violations of the Exploration Licence conditions, including those related to the Environmental  Clearance  Certificate.

The Ministry urges the public to allow the ongoing investigations to conclude . Further updates will be provided once the investigation is  complete.  The  Ministry  also encourages reporting any similar abuses perpetrated by those  granted  mineral  and energy resource rights. This incident serves as a warning to all licence holders that any abuse  will  face  the  full force  of  the law.