Chamwe Kaira
The Chamber of Mines of Namibia says the scale of the mining sector contraction reported by the Namibia Statistics Agency (NSA) may be overstated.
NSA reported that mining and quarrying contracted by 9.4% in 2025. The decline was driven by a 19.4% drop in diamond mining, along with contractions of 12.2% in metal ores and 14.5% in other mining activities.
The Chamber said this does not fully reflect production trends. Gold output increased by about 5% in 2025, while uranium production rose by around 23%. These increases would usually offset declines in diamonds.
Metal ores, including gold and zinc, made up 55% of total mining value added. Uranium contributed about 19%, showing the growing role of minerals linked to energy demand.
Diamonds remain part of the economy. The sector contributed about 2.4% to GDP and around 17% of total mining output.
Market conditions for some commodities remain supportive. Gold prices averaged US$5,019.97 per ounce in February 2026. Uranium prices rose from US$67.26 per pound in February 2025 to US$88.23 per pound in February 2026.
The Chamber said the sector is expected to remain stable in the near term, supported by demand for key minerals.
However, risks remain. Weak demand for diamonds continues to affect output. Rising fuel and energy costs are increasing operating expenses for mining companies.
The report said global tensions are adding uncertainty. While this supports gold prices, it also raises costs for producers.
The Chamber said mining will remain supported by demand for strategic minerals, but pressure from diamond markets and costs may affect overall performance.
