WINDHOEK – Namibia’s mining activities are still the backbone of the economy and will be for many years to come as the industry grew by 6 percent during the second quarter of 2014, compared to a contraction of 6.6 percent recorded in the second quarter of 2013.
Also, during 2013 the mining industry paid profit tax of N$1.64 billion (2012: N$1.12 billion) and royalties of N$1.12 billion (2012: N957.7million) while dividends paid to government were just over N$500 million (Namdeb Holdings N$351 million and NDTC N$150 million).
This is according to Veston Malango, Chief Executive Officer at the Chamber of Mines of Namibia, who explained that Namibia currently has 17 mines, of which only one is not in operation due to being placed under care and maintenance. However, with the ongoing construction of three new mines, the Husab Uranium Mine, the Otjikoto Gold Mine and the Tschudi Copper Mine, the country will soon have 20 mines ready for production.
“The mining industry continues to be the backbone of the national economy and will be for many years to come. Overall the industry is expected to grow phenomenally once new mines come into full production,” remarked Malango.
The Chamber of Mines CEO specifically pointed out Husab mine, which constitutes an investment of N$22 billion, which once in full production will become the world’s second largest uranium mine to rank Namibia second in global uranium production. He also mentioned the Tschudi mine that is being developed with a capital investment of N$900 million and will produce copper cathodes for the first time in the history of Namibia and will thereby create possible downstream value addition activities.
During a mining symposium on Friday, October 17, organized by the Polytechnic of Namibia’s Department of Mining and Process Engineering, Malango said the mining industry’s contribution of 13 percent to the country’s gross domestic product included turnover of N$20.93 billion during 2013 (2012: N$18.52 billion) and wages and salaries of N$3.12 billion (2012: N$2.93 billion).
In addition, the industry employed just over 16 700 people last year, of whom 7 582 were permanent employees, 909 were temporary employees and 8 218 were contractors.
Officially opening the symposium on behalf of the Rector of the Polytechnic, Dr Tjama Tjivikua, the Vice-Rector, Dr Andrew Nikondo, said: “As the Polytechnic of Namibia we are excited to host and facilitate this symposium. We are even more excited that it comes at a time when progress towards our transformation into the Namibia University of Science and Technology is being finalized. Coincidentally, this symposium is held in a year when the Polytechnic’s theme is ‘Universities as transforming agents of economies’ and therefore it is appropriate to create a platform that allows stakeholder interaction and engagement.”
Nikondo went on to say that such a platform will allow stakeholders to examine all environmental factors impacting their operations, encourage reflection and scrutiny of different viewpoints on current industry practice, latest findings and emerging trends, and more importantly how to deal with issues of sustainability in the future.
“The current operating environment for the minerals industry is characterized by commodity price volatility, subdued markets, skills shortage, escalating costs, diminishing ore grades, complex ore mineralogy, increased pressure to conform to environmental regulations, growing corporate social responsibility and greater demands in obtaining a social licence to operate. This ultimately puts profit margins under severe pressure. These are not myths, but are realities that today’s mineral industry has to face,” noted Nikondo.