I remain impressed by the dedication, innovation, and resilience of the Namibian mining industry, as it continues to play a vital role in our country’s economic growth and development.
The mining industry’s contribution to the GDP was 14.4% in 2023 up from 11.9% in 2022. Moreover, last year, the mining industry spent more than N$21 billion on procurement from local suppliers. In addition, the mining industry contributed at least N$6.8 billion to the fiscus in royalties and taxes as opposed to N$4.4 billion in 2022.
The industry altogether also contributed a total of N$211 million in Corporate Social Responsibility expenditure. These statistics indicate that the mining industry remains the bedrock of the country’s economy. Therefore, our ministry remains optimistic about the trajectory of Namibia’s mining industry.
Our vision is to be a significant and trusted player in the mining industry, specifically in the supply chain of critical minerals, in support of a global energy transition. Namibia is blessed to be endowed with significant amounts of critical minerals that recently started to assume prominence when the global energy transition reached a crescendo. While the global goal for net-zero carbon emissions is significant, Namibia and other developing countries remain adamant that a green transition must be just, such that it does not adversely affect the livelihoods in our societies.
There are those who suggest that we embrace an energy transition roadmap that completely ignores our current circumstances, and I caution that such a strategy has the potential to leave us more impoverished if we relinquish the benefits that can be derived from our own fossil fuel energy sources.
While the reality of climate change impact is undeniable, I believe we can address climate change while simultaneously tackling energy poverty through the judicious use of our natural resources. Let
us also remember that
no nation has achieved industrialisation solely through solar or wind power. However, those that are industrialsed today, with financial reserves, are in a better position to finance their energy transitions.
Critical minerals
As we progress with the energy transition, we will need critical minerals to support and sustain the energy revolution. The trend towards greener and decarbonised value chains and the net-zero emission goals have triggered a global interest in the exploration, mining and processing of critical minerals. Equally, increased robotics, interconnectivity, and smart automation, conceptualised by the fourth Industrial Revolution, require the supply of critical minerals. As the world figures out how to meet the demand for these critical minerals, we have realised the need for a globally coordinated effort to ensure the sustainability of critical mineral supply chains.
This calls for collaboration between resource-rich and resource-poor countries, to ensure the orderly supply chains of critical minerals. Despite an increase in the global demand for critical minerals, we are aware that the global supply is faced with inherent risks such that it is not as well established, unlike traditional commodity markets like those for gold or diamonds. In addition, it is not clear whether the current known deposits of critical minerals are actually sufficient to satisfy global demand.
It is our objective to build a critical minerals sector to create jobs throughout the value chain, starting with exploration, mining, processing and manufacturing. This will require the right investment in our country, and we will need to create a critical minerals sector that is globally competitive.
Having some of the critical minerals will also assist us in our goal of reimagining our economy through green industrialisation.
Uranium
In an industry as dynamic and challenging as mining and in particular the uranium sub-sector, financial performance is not just a reflection of numbers on the balance sheet. It is testament to the ingenuity and determination of those involved. The recent good performance of Rössing Uranium is not success in isolation, but part of a bigger mining industry that has made significant contributions to the Namibian economy. This is also evident with the number of existing uranium mines and those planned for development in Namibia.
The renewed interest in nuclear energy is a positive development for our country – a notable uranium producer globally – as uranium prices have now surpassed the US$100 per pound mark. If one combines the uranium market potential with that of the emerging green hydrogen industry, Namibia can surely become a regional powerhouse.
The Ministry of Mines and Energy, as the custodian of Namibia’s mineral resources, ensures that our minerals are mined in a responsible manner. Responsible mining is not only a desirable option, but also an imperative. Therefore, it is my expectation that mining companies in Namibia, prioritising sustainable practices that minimise environmental impacts, uphold human rights and contribute to the social and economic well-being of local communities.
Responsible mining also requires a deep commitment to environmental stewardship. Mining operations must be conducted with the utmost care to minimise ecological disruption and prevent long-term damage to our delicate socio-environmental ecosystems. Responsible mining also necessitates a long-term perspective that considers the needs of future generations. Therefore, industry players must move away from short-sighted approaches that prioritise immediate gains at the expense of long-term sustainability of our industry.
As we navigate the complex challenges of the 21st Century, responsible mining stands as a beacon of hope and a pathway towards a more sustainable and equitable future. It requires collaboration and partnership among governments, industry stakeholders, civil society, and local communities.
Oil & gas
As one would anticipate, the oil and gas discoveries, off-shore Namibia, have raised our expectations for significant revenue flows and employment opportunities for Namibians. Indeed, the discoveries hold great potential to improve our socio-economic challenges. However, I must highlight that discovering oil is not an automatic panacea to all our existing socio-economic challenges.
The development of an oil and gas industry is by nature volatile. Although Namibia expects prosperity to flow from this nascent industry, and rightly so, we would do well to manage our expectations and aspirations.
We need to be cognisant of the socio-political and economic complexities that may arise because of oil discovery and production. While potential significant oil investments are expected to flow into Namibia, if not well-managed, the subsequent result could well be a worsened socio-economic position. The duty is on every Namibian, particularly those of us who are entrusted with the responsibility to govern and manage the sector, to ensure that it is done so in the best interest of the country – for the benefit our generation and all succeeding generations of Namibians to come.
To achieve this, the ministry is working tirelessly to develop appropriate legislation and policy for the industry. This includes the development of a Local Content Policy that aims to retain maximum value from domestic oil exploitation in the country. The objectives of the Local Content Policy are to ensure Namibian citizens participate meaningfully in the oil and gas value chain.
Our aim is to empower Namibians so they can effectively and efficiently contribute to the success of our new industry. In this respect, the government will continue to strengthen efforts to ensure the expansion and enhancement of small and medium enterprises (SMEs). Efforts are also being made to remove constraints that inhibit entrepreneurship activities and the growth of small businesses into medium and large-scale competitive enterprises.
The monumental task Namibia faces in developing an oil and gas industry from the ground up cannot be done in isolation. Farmers, writers, electricians, artists, cleaners, truck drivers, and so forth – Namibia needs all hands on deck!
In closing, I would like to thank the New Era Publication Corporation as well as all contributors to this publication, for their commitment to informing Namibians about the challenges and innovations shaping the mining, oil and energy sectors today. I also thank Namibians for taking the time to be informed. Together, let’s continue to explore, learn and foster a sustainable future for Namibia.