Erasmus Shalihaxwe
The Independent Patriots for Change (IPC) has condemned the government’s proposal to secure 51% local ownership in all new mining ventures, calling it “reckless” and driven by populism.
The party criticised the proposal as a vote-seeking tactic that could harm the economy.
The plan, announced by minister of industries, mines and energy Nantangue Ithete during the 2025 Mining Expo and Conference in Windhoek on Tuesday, proposes that the government negotiate majority ownership in all future mining explorations.
IPC shadow minister of industries, mines and energy Ferdinand Hengombe warned that such a policy would deter investors and damage Namibia’s mining prospects.
“If the government proceeds with stringent local ownership rules, it will hurt Namibia’s mining prospects, especially for projects like the new lithium prospects critical for green energy,” Hengombe said.
“The oil and gas industry will also be watching closely and will not invest under such draconian and unrealistic frameworks.”
Hengombe emphasised the importance of the mining sector to Namibia’s economy.
“The mining sector procures over N$20 billion from Namibian suppliers each year, employs thousands, and pays billions in taxes and royalties. This is one of the only growing sectors of our economy, despite decades of growth-destructive policies from Swapo,” he said.
He added that while Namibia may not be getting the best possible deal, imposing a 51% local ownership requirement alongside high taxes and royalties would hinder future growth and development in the sector.
Since the announcement, there has been uncertainty regarding how this policy will be implemented. Some have questioned whether it will be done through a free-carry model or if locals will be required to pay for their shares.
In 2023, then-mines minister Tom Alweendo raised concerns over foreign dominance in Namibia’s mining and petroleum sectors. At that time, he advocated for the state to hold free-carried equity stakes , with the option to purchase additional shares while maintaining investor confidence.
Hengombe believes Ithete’s remarks would scare off new mining developments and tarnish Namibia’s reputation as an attractive investment destination for years to come.
“A balanced approach is needed that puts Namibia’s interests first while keeping essential partners at the table,” Hengombe stressed.
He called for the President, Netumbo Nandi-Ndaitwah, to hold the Ithete accountable and consider recalling him.
“The mining sector is too important for Namibia to leave in the hands of such a destructive force.”
Hengombe also pointed to the collapse of South Africa’s mining sector due to similar policies, noting that no significant mines have been developed in the country for over a decade.
He criticised Ithete for relying on populist narratives without properly understanding the sector’s dynamics.
“The minister has done no homework and simply sings populist narratives to try and win votes at the expense of the economy,” Hengombe warned.
Since Ithete’s announcement, the government has not provided further clarification on how it intends to secure 51% equity in new mines.
Economists such as those at Simonis Storm Securities have said the ideal situation is for Namibia to mine and sell its resources for the benefit of its people, but due to the country’s lack of capital and expertise, this remains a challenge.
Reports from this week show analysts argue that a 51% share is a tough sell to serious investors, though they agree that increasing local ownership is a valid approach.
A 51% free-carry model, they suggest, could exclude Namibia from global exploration budgets.
Currently, Epangelo Mining holds a 10% stake in the Husab Uranium Mine, which is managed by Swakop Uranium and majority-owned by China General Nuclear (CGN).
Epangelo also has a 10% stake in the Kombat Copper and a 7.5% stake in the Navachab Gold Mine from QKR Namibia.
Additionally, Epangelo holds an 8% stake in Sakawe Mining Corporation, operating as Samicor Diamonds, and a 5% stake in Yellow Dune Uranium Resources, a joint venture with Reptile Uranium Namibia and Deep Yellow.
Other stakes pursued, such as the 5% stake in Bannerman Energy’s Etango uranium project, were not concluded.
