Chamwe Kaira
Namibia’s mining sector has continued to show resilience despite a weak global economy, the Chamber of Mines of Namibia said in its July monthly update.
Global growth in early 2025 has been subdued, with major economies such as the United States and the United Kingdom slowing, while emerging markets have delivered mixed results.
Rising inflation, trade volatility, and falling external demand led the Bank of Namibia (BoN) to revise its growth forecast for 2025 from 3.8% to 3.5%.
The chamber stated that the contraction in agriculture and diamond mining had an impact.
Mining, however, remains the backbone of Namibia’s exports. Uranium, gold, copper, and tin performed strongly.
Gold prices averaged US$3 352.66 per troy ounce in June, up 44% from June 2024.
The rise was driven by investor demand for safe-haven assets. Higher gold production in Namibia, combined with strong prices, is expected to lift exports and state revenue.
Copper prices rose to US$9 434.40 per metric tonne, a 3% increase since the start of the year, supported by industrial demand.
Tin traded at US$32 097 per metric tonne, boosted by supply shortages and strong demand from electronics and semiconductors.
Uranium prices remain 167% above pre-pandemic levels, supported by a global shift towards nuclear energy. Diamonds continue to struggle, with prices down 45% since late 2022 due to competition from lab-grown stones.
The Namibia Statistics Agency (NSA) reported mixed output trends in June. Uranium production rose 36% year-on-year and 42% on a 12-month average, though monthly production fell. Gold output increased 7% month-on-month and year-on-year.
Diamonds rebounded 24% on a monthly basis but remain lower than last year. Zinc recorded the steepest losses, dropping 36% month-on-month and 37% on a 12-month average.
The chamber noted that the United States lowered tariffs on Namibian exports from 21% to 15%, offering temporary relief.
“This uncertainty adds to the challenges faced by Namibian exporters in navigating global trade dynamics.”
Namibia’s inflation stood at 3.7% in June, within the Bank of Namibia’s target range.
Forecasts project 4.1% in July and 4.2% in August, creating a stable cost environment for mining and supporting export competitiveness.
The chamber said the mining outlook remains cautiously optimistic. Long-term growth will be driven by uranium, gold, and copper, supported by the global energy transition, infrastructure development, and safe-haven investment demand.
“However, structural risks persist in the diamond market, fuelled by geopolitical uncertainties and rising competition from lab-grown alternatives. In the near term, growth in uranium and gold will continue to bolster the sector, supported by current geopolitical dynamics and favourable market conditions,” it said.
Caption
Workers at the QKR Namibia Navachab Gold Mine in Karibib. Higher gold production, combined with elevated prices, is expected to boost Namibia’s export earnings and state revenue.
- Photo: QKR Namibia
