Chamwe Kaira
The Chamber of Mines of Namibia has released its monthly mining update for October, showing that the mining sector remained stable despite global economic uncertainty, weak industrial activity in key markets, and pressure on diamond and base-metal demand.
The update shows that mining continues to play a central role in the national economy, supported by strong performance in gold and uranium.
Global conditions in October reflected softer industrial output in China, ongoing trade tensions, and cautious investor sentiment.
Despite this, Namibia’s mining industry held steady, supported by record gold prices and continued growth in uranium production.
Gold reached a historic monthly average price of US$4 058.33 per troy ounce, the highest on record.
This lifted export earnings and strengthened the outlook for producers such as Navachab and B2Gold’s Otjikoto Mine. It also improved the economics of the planned Twin Hills Gold Project.
Uranium production continued to rise, increasing by 6% month on month and 22% year on year. The growth was driven by steady output from Swakop Uranium and Rössing, despite global supply-chain challenges.
Diamond markets remained weak during the period. Base metals also faced pressure, with zinc recording a sharp decline due to lower global demand.
Copper stood out, trading above US$10 000 per metric tonne for the first time since mid-2024, supported by demand from renewable energy and electric vehicle manufacturing.
The mid-term budget review tabled in October highlighted the impact of the diamond downturn on government revenue. Diamond company tax dropped to N$239 million in 2024/25, far below the budgeted N$1.48 billion.
Projections for 2025/26 show a further decline to N$115 million. Diamond royalties also fell from N$1.16 billion in 2024/25 to N$901 million in the latest estimates.
At the same time, non-diamond minerals continued to provide strong fiscal support. Revenue from other mining company tax rose to N$2.87 billion in 2024/25, almost double the original budget estimate, and is projected to increase to N$3.54 billion in 2025/26.
Non-diamond mineral royalties also exceeded expectations, rising from a budgeted N$747.8 million to N$1.03 billion in 2024/25 and remaining at the same level in the current projections.
For the first time, non-diamond mineral revenues have overtaken diamond revenues.
This reflects a shift toward a more diversified mining revenue base, with uranium and gold playing a growing role in government income and exports.
“Record gold prices and strong uranium output continue to offset global weaknesses in diamonds and base metals. As we deepen investor engagement and work with the Government to clarify the policy environment, the sector remains well-positioned to drive growth, sustain jobs, and support Namibia’s long-term economic transformation,” said Chamber of Mines chief executive officer Veston Malango.
The update also notes progress at Swakop Uranium, where work continues on a US$170 million desalination plant.
The project is expected to create about 1 000 construction jobs and improve long-term water security in the Erongo Region.
Caption
Uranium production rose by 6% month on month and 22% year on year.
- Photo: Contributed
