COUNTRY IN FOCUS •
Per the 2022 Annual Chamber of Mines of Namibia Review , the mining industry grew by 21.6 % contributing 12.2 % to GDP in 2022 . This growth was predominantly driven by a significant boost in the production of diamonds from Debmarine Namibia ’ s new state of the art Mining Vessel , the Benguela Gem . The mining sector also directly employed 16 147 people last year , increasing from 15 246 in 2021 . The Chamber cited the increase in employment as a result of the new employment positions created on Debmarine Namibia ’ s new mining vessel and increased exploration activities , which contributed to a higher number of contractors employed – with a total of NAD964.9-million spent on exploration in the year . Over and above this , the mining sector spent approximately NAD16.823- billion on goods and services procured locally . 7
Furthermore , total capital investment reported by Chamber members was NAD5-billion while “ exploration continued with its upward trajectory , breaching NAD1.3-billion in real terms . This expenditure continued to be driven by progressive exploration activities at Andrada Mining ’ s Uis tin mine , the fast-tracking of the Osino Resources Twin Hills project , the advancement of uranium projects and the discovery rush for critical minerals in Namibia .” 7
Commodity offering Diamond mining has been the leading sub-sector historically , with NamDeb , a 50:50 joint venture between the Namibian government and De Beers being the primary land-based diamond mining company , while Debmarine Namibia , also a 50:50 joint venture between the two entities , is involved in offshore diamond mining .
In June 2022 it was reported that Namibia is now the second largest producer of uranium oxide in the world . Rossing Uranium managing director Johan Coetzee noted at the time , “ Our production , together with the production of Swakop Uranium , meant that Namibia has now surpassed both Australia and Canada to become the world ’ s second largest primary producer of U3O8 , after Kazakhstan , which continues to dominate the market from a supply side .” 8
There has been a marked increase in the exploration for uranium in Namibia and it is most likely that two advanced projects will soon enter mine development – namely Bannerman ’ s Etango project and Reptile Uranium ’ s Tumas project – while Paladin ’ s Langer Heinrich uranium mine , which was placed on care and maintenance in 2018 , is moving towards the re-start of operations . Bannerman Energy Limited reported the results from the Definitive Feasibility Study ( DFS ) completed on its 95 % -owned Etango-8 Uranium Project in Namibia late last year stating a definitivelevel confirmation of strong technical and economic viability of conventional open pit mining and heap leach processing of the world-class Etango deposit at 8Mtpa throughput . Commenting on the Etango-8 DFS , Bannerman CEO , Brandon Munro , said , “ We have commenced Front End Engineering and Design and are moving firmly down the path towards production at the precise moment the world wakes up to the essential role of nuclear power . Our mining licence application was submitted in August of 2022 , and we are well underway with parallel offtake and project finance workstreams . All of this activity is driving towards a targeted positive Final Investment Decision on Etango-8 , uranium market conditions permitting , during H2 CY2023 .” ⁹
Namibia is also a leading producer of zinc . There are two operational mines – Skorpion Zinc ( operated by Vedanta Resources ) and Rosh Pinah (~ 90 % owned by Appian Capital Advisory , a UK-based private equity company ).
Meanwhile , iron ore has also emerged as a Namibian secret treasure . Lodestone , a mining company with US shareholding , is extracting iron ore deposits in eastern Namibia . The Lodestone Dordabis mine , the first operational iron mine in Namibia , commenced production in 2015 . The magnetite and hematite products are being sold to local niche consumers , such as Ohorongo Cement . The Chamber noted in its 2021 annual review that local sulfuric acid and iron ore production are consumed as inputs by Namibian operations , exemplifying how mining sector growth leads to the expansion of upstream and services sectors .
The country is also a source of critical minerals important for renewable energy technologies with potential to develop new mining projects for cobalt and lithium . For example , global lithium exploration and development company Lepidico Ltd is developing a lithium mine in western Namibia . Desert Lion began shipping lithium ore in 2018 , with the first shipment of 30 000 tons , while Gecko Opuwo Cobalt is developing a cobalt deposit in Kunene Region .
Investment opportunity In his discussion with African Mining , minister Alweendo explained that great potential opportunities lie in exploration of these minerals critical to the global energy transition , as well as opportunities that still lie in unexplored uranium and gold . He pointed out , “ I think we need to do more to identify with some precision as to where these minerals lie .” Referring to the many recent success stories in Namibia , with regards to exploration activity in this sector , he invited investors , saying , “ We just need investors ready to explore these opportunities .”
The minister added , “ Although Namibia has a fully functional and transparent cadastre system , significant progress is being made in the development of a fully automated and upgraded system to make it possible for investors to do applications online and to enable online assessments , payments and submission of quarterly reports . The objective is to reduce discretional process and speed up turnaround timing on applications for investors .”
www . africanmining . co . za African Mining Publication African Mining African Mining • October 2023 • 15