MINING AND ENERGY
THE NAMIBIAN MINING SECTOR CONTINUES TO MAKE WAVES, CONTRIBUTING NO LESS THAN 11.1% TO THE COUNTRY’S GROSS DOMESTIC PRODUCT (GDP) AS PER RECENT FIGURES. IN ORDER TO WEATHER THE GLOBAL ECONOMIC STORMS, A NUMBER OF MINES HAVE COME UP WITH INNOVATIVE STRATEGIES WHICH SEEM TO BE REAPING REWARDS. HIGHLIGHTS: 1.
The mining sector made a direct contribution of 11.1% to GDP in 2016.
2.
Tschudi copper mine trebled Namibia’s refined copper cathode production.
3.
B2Gold’s Otjikoto gold mine posted record production.
4.
Through a joint venture (JV) partnership, Imerys Graphite and Gecko Namibia continued the development of the Okandjande graphite mine.
5.
Salt & Chemicals inaugurated their salt expansion project, which would boost salt production from 700 000 tonnes to 1 000 000 tonnes by 2018.
6.
Tests work conducted in six phases on Bannerman’s Heap Leach Demonstration Plant yielded results far exceeding benchmarks in the optimisation study.
Other highlights include: •
turnover > N$28.85 billion
•
wages and salaries > N$4.15 billion (excluding Swakop Uranium)
•
exploration spending by operating and exploration companies > N$510.92 million
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corporate tax paid > N$1.75 billion (N$2.35 billion in 2015)
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royalties paid > N$1.45 billion (N$1.41 billion in 2015)
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total taxes paid > N$3.21 billion (N$3.76 billion in 2015)
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chamber members directly employed 9 574 permanent individuals, 669 temporary employees, and 5 400 contractors (2015: 8 853 permanent employees, 716 temporary employees, and contractors
According to Veston Malango, the chief executive officer of the Chamber of Mines of Namibia, the Chamber in partnership with the Government
New Equitable Economic Empowerment Framework (NEEEF) Bill and additional conditions to licences were cited as the main drivers for the ranking degradation. This comes at a time when the Namibian economy finds itself in a vulnerable situation, where Government debt levels are at 42% of GDP, surpassing sustainable thresholds. Through the formulation of the Fifth National Development Plan (NDP5), the Chamber identified significant opportunity for investment in the manufacturing of inputs into the mining sector, such as components for processing plants. The mining sector spent 41% of its revenue on locally procured goods and services in 2016, which presents itself as an appealing business case to manufacture some of these inputs. This is one of the many examples in which the mining sector provides critical mass for the advancement of other industries. For such investments to occur, however, a favourable and conducive regulatory environment is of utmost importance. Furthermore, the mining sector, through its comprehensive Corporate Social Responsibility programmes, has already made significant contributions to the achievement of a number of goals and targets in the Harambee Prosperity Plan and National Development Plans. What is required is an environment in which privately owned businesses, and thereby mining companies, can flourish without having to comply with restrictive regulatory requirements, Malango says. The attractiveness of the mining sector, along with others, will continue to be eroded should uncertainty around the proposed pieces of legislation and policies continue, especially during a time where the Namibian economy cannot afford to forego new investments and business opportunities. According to the Chamber of Mines, some of the value-addition
has over the last seven years worked relentlessly to ensure that Namibia
possibilities in the mining sector are:
remains an attractive destination for investment in mining and to ensure
•
Diamonds: Cutting and polishing
that this sector, one which underpins economic growth in Namibia,
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Copper: Copper refining to 99.99% LME grade as well as manufacturing of copper products such as wire and tubes
continues to create maximum economic benefit for the country. In 2014, the Fraser Institute Survey of Mining Companies ranked
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of zinc products
Namibia as the most attractive destination for investment in mining and exploration on the African continent. In the most recent 2016
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w w w. n a m i b i a t r a d e d i r e c t o r y. c o m
Dimension & semi-precious stones: Additional cutting and polishing factories
survey, Namibia’s ranking has, however, fallen to ninth position. The
170
Zinc: Zinc refining to 99.99 percent purity as well as manufacturing
Salt: Refining and packing as well as use in a chemical industry
