Chamwe Kaira
The Chamber of Mines of Namibia has warned that the government’s requirement to process rare earth elements and lithium locally could deter investment.
The chamber said the deposits are often small, and the policy creates uncertainty, limiting their development.
It also raised concerns about the requirement for farmland transfer when acquiring a mine or mining license, saying the process is slow and creates unnecessary delays.
On the Fraser Institute Survey, Namibia’s ratings improved, with its Investment Attractiveness Index rising from 56 in 2023 to 66 in 2024.
The country’s global ranking climbed to 35th out of 82 jurisdictions, up from 42nd out of 86 the previous year. Within Africa, Namibia retained its position as the 4th most attractive mining investment destination out of 20 jurisdictions surveyed, the same as in 2023 and up from 6th out of 16 in 2022. On the Policy Perception Index, Namibia ranked second on the continent.
“As a mining industry, we are 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,” said the president of the Chamber of Mines George Botshiwe.
Despite the progress, the chamber said no substantial progress was made in finalising the Draft Minerals Bill in 2024.
It noted that while technical discussions took place on the previously proposed state-owned free carry, the recent announcement by the minister of industries, mines and energy of a 51% local ownership requirement created new uncertainty.
“The chamber is deeply concerned about recent policy pronouncements, particularly the proposed 51% Namibian ownership requirement in new mining ventures. Such measures risk undermining the progress made and could potentially reverse the gains in exploration investment, positioning Namibia as one of the least attractive destinations in Africa in the 2025 Fraser Survey,” said Botshiwe.
The chamber said it continues to engage with the government and the line ministry to push for a policy framework that balances local empowerment with the competitiveness and growth of the mining sector.
The Fraser Institute’s Investment Attractiveness Index combines the Policy Perception Index, weighted at 40%, and the Best Practices Mineral Potential Index, weighted at 60%.
Namibia’s improvement was supported by a 10-point rise in both sub-indices, with the Policy Perception Index increasing from 18 in 2023 to 28 in 2024, and the Mineral Potential Index rising from 49 to 59.
The Geological Survey of Namibia was commended in the Fraser Institute Survey by one participant, who said its database is updated and transparent.
Caption
The Chamber of Mines of Namibia is concerned about some of the recent mining policies.
- Photo: Chamber of Mines of Namibia
