Chamwe Kaira
The Chamber of Mines of Namibia has clarified that it supports the government’s plan to add value to minerals in the country.
CEO Veston Malango clarified in an interview with Observer Money that the Chamber of Mines of Namibia supports local value addition to all minerals produced in Namibia to grow the economy and create jobs.
He said Chamber had already in June 2023 welcomed the cabinet decision on the understanding that cabinet was referring to the ban on the export of mineral ores, meaning ores of all the minerals mentioned in the cabinet decision.
Malango said the chamber has already stated that it is necessary for the government to control and regulate the export of unprocessed critical minerals to support job creation and grow the economy in line with the African Mining Vision.
The cabinet announced in June 2023 that it had approved the prohibition for the export of certain critical minerals, such as unprocessed crushed lithium ore, cobalt, manganese, graphite and rare earth elements; and the cabinet approved that smaller quantities of the abovementioned minerals may be allowed for export at the discretion of the minister of mines and energy, subject to cabinet endorsement.
Malango further explained that some of the views contained in the chamber’s position on Namibia’s performance in the 2024 Fraser Survey were those of the exploration companies that were surveyed by the survey and not those of the chamber.
He added that the chamber does not support the views of concerns raised in the survey by one of the exploration company presidents, who was cited as saying that the requirement to process rare earth elements and lithium locally may have stifled the potential for developing these deposits in the country, particularly due to their small size, creating uncertainty and deterring investment.
The exploration company president was further quoted as saying the requirement for farmland transfer when purchasing a mine or mining licence is cumbersome and time-consuming, creating unnecessary delays and deterring investment.
The 2024 Fraser Institute Survey of Mining Companies has reported a notable improvement in Namibia’s performance on the Investment Attractiveness Index (IAI), rising by 10 points from 56 in 2023 to 66 in 2024. This improvement elevated Namibia’s global ranking to 35th out of 82 jurisdictions, up from 42nd out of 86 in the previous year.
In the African context, Namibia retained its position as the 4th most attractive mining investment destination out of 20 jurisdictions surveyed, consistent with its ranking in 2023 and marking a steady rise from 6th out of 16 jurisdictions in 2022. On the Policy Perception Index (PPI), Namibia ranked as the second most attractive jurisdiction in Africa, a key contributor to its overall investment appeal.
Botshiwe said the mining industry was proud of Namibia’s improved ranking in the global investment landscape for mining and increasing competitiveness among her African peers as a sought-after mining investment jurisdiction. This performance is reflected in the substantial increase in exploration activity, which increased by 106.3% and 7.3%, respectively, in 2024, Botshiwe said.
While Namibia performed exceptionally well on its PPI score and ranking, no substantial progress was made in finalising the Draft Minerals Bill in 2024. Technical discussions commenced on the previously proposed state-owned free carry; however, the recent announcement by the Minister of Mines and Energy regarding 51% local ownership has introduced a new wave of policy uncertainty to the mining sector.
The chamber said it is actively engaging with government stakeholders to advocate for a mutually beneficial policy framework that promotes local empowerment while safeguarding the competitiveness and growth of Namibia’s mining sector.
