51% mines ownership proposal 'not govt policy'

President Netumbo Nandi-Ndaitwah told mining industry leaders that the proposed 51% local ownership requirement for future mining licences was not formal government policy, according to the Chamber of Mines of Namibia.

The disclosure, contained in the Chamber’s 2025 annual review, comes after months of uncertainty that rattled investors and raised concerns about Namibia’s policy direction.

Chamber CEO Veston Malango said the proposal - first announced by former mines minister Natangue Ithete at the 2025 Mining Expo in Windhoek - triggered widespread unease in the sector.

Malango said the industry escalated the matter to State House after struggling to obtain clarity from Ithete, who at the time also served as deputy prime minister.

“The announcement immediately heightened investor concern over policy predictability and investment security,” Malango noted, adding that some Namibia-linked mining companies were temporarily suspended on the Australian Stock Exchange following the remarks.

He said concerns also emerged that similar ownership requirements could extend to the oil and gas sector.

Escalation to State House

According to Malango, initial engagements with Ithete revealed strong views that the mining sector was not delivering sufficient broad-based benefits to Namibians.

In response, the Chamber sought to demonstrate the industry’s contributions through employment, taxes, local procurement, skills development and community investment.

However, efforts to secure sustained engagement were limited, with one meeting held on 14 July 2025 lasting only about 40 minutes.

With uncertainty mounting, the industry escalated the issue and met President Nandi-Ndaitwah on 17 September 2025.

Senior officials from the National Planning Commission (NPC) and the ministry attended the meeting, which focused on stabilising the policy environment.

Malango said the key outcome was a direct clarification from the President.

“She advised that the 51% threshold did not constitute formal government policy,” he said.

Government also committed, through the NPC, to issue a public clarification to address market uncertainty.

Policy reset

The meeting further resulted in the National Planning Commission being designated as the central coordinating authority on local ownership policy, effectively shifting the issue away from ad hoc political statements toward a formal policy process.

Despite tensions, Malango said technical engagement between government and industry continued throughout the year, with the Mining Commissioner participating in Chamber forums and providing updates on licensing and regulatory matters.

NDP6 complicates picture

The debate has been further complicated by Namibia’s Sixth National Development Plan (NDP6), launched on 22 July 2025, which set a 51% local ownership baseline for mining licences and a target of 60% by 2030.

Malango said the Chamber had participated in drafting the mining chapter but later found that several of its submissions were diluted or omitted from the final document.

He noted that the ownership benchmarks were not introduced during initial consultations and do not align with the ownership structures of most large-scale mining operations, with Namdeb Holdings being a notable exception.

Following further engagement, the National Planning Commission clarified that the 51% figure had been calculated on an aggregated basis, including mining claims.

Malango said the commission has since acknowledged the need to recalibrate both the 51% baseline and the 60% target to better reflect industry realities.