Mining tax contributions decline by 24% despite profit gains
The mining sector’s fiscal contribution to government revenue saw a significant decline in 2024, with corporate taxes, royalties and export levies falling by 23.8%, 11.3% and 0.28%, respectively.
Chamber of Mines of Namibia president Zebra Kasete said the total sector revenue increased by 1.4%, from N$51.5 billion in 2023 to N$52.2 billion in 2024. Profitability also rose by 3.3%, from N$2.7 billion to N$2.8 billion.
However, despite these gains, the sector’s tax contributions declined significantly.
“The mining sector’s fiscal contribution to government revenue saw a significant decline in 2024," he said.
He attributed this primarily to a slump in diamond sales, which traditionally constitute a significant portion of the sector’s fiscal contributions.
“The downturn in diamond prices, coupled with reduced demand in key markets, led to weaker profitability and constrained sales volumes, thereby diminishing the revenue base from which taxes and royalties are derived,” he explained.
Nevertheless, Kasete said the strong performance of gold and uranium operations – driven by record-high global prices and stable demand – helped offset the impact. Increased operational efficiencies and stricter cost controls across several operations also contributed to the improved profitability.
Exceed targets
The Namibia Revenue Agency (NamRA) underscored the importance of mining revenues to the national budget.
Commissioner Sam Shivute recently commented on the government's ongoing reliance on the sector.
“We have collected N$83 billion for the 2024/2025 financial year. From a diamond sector perspective, this year we are not getting about N$6 billion compared to last year. But despite the fact that we are not getting N$6 billion from the diamond sector, we are still able to exceed our revenue target come March 2025,” Shivute said.
Diamond mining operations in Namibia are subject to a 55% corporate tax and a 10% royalty on rough diamonds.
Mines in care and maintenance
Of the country’s 24 mines, eight remained under care and maintenance during the year under review. However, 2024 also marked several key milestones for the sector, including the reopening of two major operations: the Tschudi Copper Mine and the Langer Heinrich Uranium Mine.
“The Langer Heinrich uranium mine successfully resumed production after six years of care and maintenance, commissioning its processing plant and achieving first production of yellowcake. This reopening was driven by uranium prices reaching a 15-year high, fuelled by global commitments to expanding nuclear energy capacity,” said Kasete.
He also highlighted progress at the Tschudi mine: “CCC recommissioned the Tschudi copper plant in August, initiating the production of high-quality London Metal Exchange (LME) Grade A copper cathode. Over 75% of refurbishment capital was sourced locally, supporting Namibian businesses and creating over 60 jobs," he noted.
This effort aligns with Namibia’s emphasis on mineral beneficiation and marks the first phase of CCC’s strategy to recommission three brownfield copper mines in the country, Kasete said.
Chamber of Mines of Namibia president Zebra Kasete said the total sector revenue increased by 1.4%, from N$51.5 billion in 2023 to N$52.2 billion in 2024. Profitability also rose by 3.3%, from N$2.7 billion to N$2.8 billion.
However, despite these gains, the sector’s tax contributions declined significantly.
“The mining sector’s fiscal contribution to government revenue saw a significant decline in 2024," he said.
He attributed this primarily to a slump in diamond sales, which traditionally constitute a significant portion of the sector’s fiscal contributions.
“The downturn in diamond prices, coupled with reduced demand in key markets, led to weaker profitability and constrained sales volumes, thereby diminishing the revenue base from which taxes and royalties are derived,” he explained.
Nevertheless, Kasete said the strong performance of gold and uranium operations – driven by record-high global prices and stable demand – helped offset the impact. Increased operational efficiencies and stricter cost controls across several operations also contributed to the improved profitability.
Exceed targets
The Namibia Revenue Agency (NamRA) underscored the importance of mining revenues to the national budget.
Commissioner Sam Shivute recently commented on the government's ongoing reliance on the sector.
“We have collected N$83 billion for the 2024/2025 financial year. From a diamond sector perspective, this year we are not getting about N$6 billion compared to last year. But despite the fact that we are not getting N$6 billion from the diamond sector, we are still able to exceed our revenue target come March 2025,” Shivute said.
Diamond mining operations in Namibia are subject to a 55% corporate tax and a 10% royalty on rough diamonds.
Mines in care and maintenance
Of the country’s 24 mines, eight remained under care and maintenance during the year under review. However, 2024 also marked several key milestones for the sector, including the reopening of two major operations: the Tschudi Copper Mine and the Langer Heinrich Uranium Mine.
“The Langer Heinrich uranium mine successfully resumed production after six years of care and maintenance, commissioning its processing plant and achieving first production of yellowcake. This reopening was driven by uranium prices reaching a 15-year high, fuelled by global commitments to expanding nuclear energy capacity,” said Kasete.
He also highlighted progress at the Tschudi mine: “CCC recommissioned the Tschudi copper plant in August, initiating the production of high-quality London Metal Exchange (LME) Grade A copper cathode. Over 75% of refurbishment capital was sourced locally, supporting Namibian businesses and creating over 60 jobs," he noted.
This effort aligns with Namibia’s emphasis on mineral beneficiation and marks the first phase of CCC’s strategy to recommission three brownfield copper mines in the country, Kasete said.
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